The business, which is now under the control of bondholders following a refinancing to fill a £1.5 billion hole in its balance sheet, said it expects to make losses during this year and in 2015.
Chief executive Niall Booker said management kept the bank alive during 2013 but that there were still "significant issues" which need to be resolved.
The business added that £5 million of deferred payments will not be made to former executives who left the bank prior to its collapse.
It also emerged in the annual report that Mr Booker was paid £1.7 million last year, including £943,000 as a fixed allowance "that takes account of the broad range of specialist skills required of the role".
The allowance is equivalent to £140,000 per month and is payable quarterly up until June 2015, the Co-op said.
Mr Booker, who took the role in June, said he plans to simplify the business, reduce costs and return the bank to its roots in focusing on retail and small and medium-sized business customers.
However, the recovery was dealt a blow last month when the Co-op revealed it needed to raise another £400 million from shareholders in order to cover compensation costs, including for PPI redress.
It meant the starting capital position of the bank in its five year recovery plan was weaker than in the plan announced last year.