Co-op bank turns corner as net lending tops £2bn
The Co-operative bank has published a healthy set of financials for the first nine months of the year after turning a loss in 2020.
The bank reported statutory profit before tax of £28.5m and underlying profit of £24.9m, a marked improvement on last year when the bank saw a loss of £68.1m before tax.
The reversal comes as the bank increased lending by £1.1bn in the third quarter taking gross mortgage lending for the year to £4.1bn and net residential lending to £2.2bn – up by 13 per cent year-on-year.
Nick Slape, Chief Executive Officer at the Co-op bank said “these results further demonstrate that our position on ethical and social matters is not only good for our communities, but also delivers strong commercial outcomes. I firmly believe that doing good is aligned with doing well in business.”
The bank saw total income jump by 16 per cent in the third quarter while customer interest increased from 144 to 157 bps.
According to Slape the results put the Co-op on track to meet or exceed guidance expectations for 2021 financials which leaves the company in a strong position to pursue a refreshed growth strategy.
The news comes after reporters emerged indicating Co-op bank had sounded out Spanish lender Banco de Sabadell over buying fellow bank TSB.
Sabadell acquired TSB after it was floated on the stock market by its previous owner, Lloyds. It has around 290 branches in the UK.
Read more: Co-op bank confirms TSB approach