Co-Operative Group cuts value of Co-op bank stake by 45 million pounds

LONDON (Reuters) - Co-Operative Group ltd <42TE.L> has lopped 45 million pounds off the valuation of its stake in Co-Op Bank, the company said on Friday, reflecting declining confidence in the lender's fortunes amid broader problems in the bank sector. The bank said in April it will remain unprofitable for the next two years, as losses from asset sales and low interest rates make rehabilitating it harder. Co-Op Bank nearly collapsed in 2013 with a 1.5 billion pound hole in its capital after losses from problem real estate loans. Bondholders ultimately took control of the bank, while its longstanding owner, the mutual Co-Operative Group <42TE.L>, became a minority holder. Co-Op Group said on Friday it now values its stake in the bank at 140 million pounds. (Reporting by Lawrence White; editing by Susan Thomas)