It is the third time Co-op Bank has turned a quarter of its profit after losing money for almost a decade.
Therefore, the Manchester-based bank reported pre-tax profits of £28.5 million during the nine months ended September 30, compared to a £68.1million loss during the same period in 2020.
Over the same period, the bank’s total income rose from £224.4m to £259.2m. It follows the rejection of TSB’s surprise offer from Co-op Bank.
The CEO Nick Slape said: “I am happy to present a third straight quarter of statutory and underlying profit. In addition, the net income has risen 16%, while the consumer net interest margin has increased by 157 basis points from 144 basis points.
“Underlying costs have fallen by 8% to £244 million, a decline of 14% on a statutory basis to £250 million. We added a supplementary £1.1bn of gross mortgage lending during the quarter, bringing the total to £4.1 billion in 2021.
“The total residential lending has now reached £2.2 billion for 2021, which represents an increase of 13% in mortgage borrowing, and we are entering the last quarter of the year with a strong pipeline.
“Concerning SMEs, we are on track with the significant investment programme, and our business banking website has been revamped, which now provides tailored support to businesses based on their circumstances.
“This also includes providing enhanced support to startups through Business Concierge services, timely updates on Covid-19 issues, fraud prevention information, and finally access to our award-winning request to pay app Incoming developed jointly with Bankifi.
In September, we invited consumers and co-workers to participate in our sixth Values and Ethics Survey, designed to help us understand how consumers feel about sustainability and social justice.
As a result, this individual consultation will directly affect the ethical policy, so which will be introduced early next year and the prioritizing choices the bank will make.
“In the next few quarters, we expect results that are in line with or better than our guidance. It put us in an excellent position to deliver the stimulating strategy I announced in October.
“The bank is celebrating its 150th anniversary next year, and these findings prove that our stance toward social and ethical issues. It not only benefits the community but also makes business sense. Smart business depends on doing well and is the cause for success.”
