The Co-operative Bank has written down £148.4m after deciding not to go ahead with the implementation of a new core banking platform.
The bank revealed the write down as part of its financial results for the six months to 30 June 2013.
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Niall Booker, chief executive officer of the Co-operative Bank, said that the organisation "recognised the disappointment all stakeholders must feel about the [bank's] financial performance".
"Work is continuing to finalise the exact details of the shape and structure of the core bank, the systems underpinning it, the product range and target customer base as well as the cost take out required to return the business to profitability," he stated.
Details of the bank's IT write down were in the financial results under the heading "intangible asset impairment".
"The directors have concluded that the IT assets previously under creation to replace the core banking platform will no longer be implemented as they are inconsistent with the bank's strategy going forward, resulting in a write down of £148.4m," the report reads.
Booker said that he does not expect the bank to be profitable for "some years" and that legacy issues would continue to have an impact on the bank.
The Co-op is writing-off ongoing systems upgrades, including a migration to Infosys's Finacle banking platform, which was signed in 2009 after the Co-op Group had acquired Britannia Building Society. However, the migration has not been completed; some areas of the bank use the platform already, and others have not implemented it.
In January, The Times reported that the bank could write down up to £200m of IT investments if it was able to finalise its proposed acquisition of 632 Lloyds Banking Group (LBG). The £200m mark was nearly as much as the Co-op Banking Group's total profits last year.
In April, it became apparent that the bank had a capital shortfall which led to the LBG deal falling through. However, the bank has still ended up writing down nearly £200m of IT investments.
