‘Positive’ start to the year for Co-op Bank

The Co-operative Bank has reported a ‘resilient performance’ for the first quarter of this year as income has started to climb.

The bank declared a statutory profit before tax of £7.2m and underlying profit of £2.6m for the three months to the end of March 2021.

Total income has increased to £81.2m increase in mortgage balances of £1bn (6%) with a strong pipeline (£2bn) and growth in core customer deposits.

CEO Nick Slape hailed a “positive start to the year.”

He said: “I am encouraged by the Bank’s financial performance in the first quarter, achieving a small underlying profit – an important first step towards sustainable profitability from 2021.

“We have delivered a resilient performance by maintaining our focus on income generation, simplification and by reducing our operating costs.

“Our retail business continues to grow, with net residential lending increasing by 6% in the quarter with a strong pipeline. Our SME banking proposition is developing well with the launch of a new mobile app, credit card and same-day onboarding, alongside a strong pipeline of new customers switching to join us.”

The Co-op has also welcomed JC Flowers and Bain Capital Credit as new investors in the Bank, subject to regulatory approval.