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Co-operative Bank posts profitability for fifth quarter in a row

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The Co-op board said it was confident in the group’s outlook for the year, as it steams ahead with plans to target eight million members by the end of the decade. 
The Co-op board said it was confident in the group’s outlook for the year, as it steams ahead with plans to target eight million members by the end of the decade. 

The Co-operative Bank has achieved profitability for its fifth quarter in a row, after posting pre-tax profits of £30.5m.

The Manchester headquartered bank said its profits had increased for the fourth consecutive quarter, as its earnings were bolstered by its mortgage business.  

The bank said its net income had increased 36 per cent year-on-year to £110.2m, as its net interest income increased 40 per cent to £99.9m.

The increases saw the co-op’s pre-tax profits increase four times over, in jumping to heights of £30.5m for the three months ending on 31 March, compared to profits of £7.2m for the same period last year.

Co-operative Bank’s higher profits came as the firm’s costs increase three per cent, to £84.7m, as it paid out higher salaries to its staff and made a one-off payment worth £1.7m to bring its mortgage and savings platforms in-house.  

Co-operative Bank chief executive Nick Slape said the investments would help it “improve recruitment and retention in light of the challenging environment.”

The results come as the firm is this year celebrating its 150th anniversary, after first being set up as the financial services arm of the Co-operative wholesale society in Manchester in 1872.