Co-operative Bank continues profit recovery after turnaround plan

The company stuck an upbeat note as it reported trading at least in line with expectations.

The Co-operative Bank has unveiled its third straight quarter of profits (Rui Vieira/PA)

By Henry Saker-Clark, PA City Reporter

November 05 2021 10:46 AM

The Co-operative Bank continued progress in its turnaround as it unveiled its third straight quarter of profits.

The company stuck an upbeat note as it reported trading at least in line with expectations in the update, which came just a week after its efforts to buy rival lender TSB were snubbed.

It made no reference to any potential acquisition strategy after TSB’s Spanish owner, Sabadell, rebuffed the takeover approach.

On Friday, the bank reported a £28.5 million pre-tax profit for the nine months to September 30, compared with a £68.1 million loss for the same period last year.

The group is now reaping the benefits of the transformation plan it launched after being rescued by a group of hedge funds in 2017.

The bank said it saw strong mortgage demand continue during the quarter, reporting £1.1 billion of gross mortgage lending to take it £4.1 billion for 2021 so far.

Chief executive Nick Slape said: “Looking to the future, I am pleased to confirm that we are tracking in line with or ahead of our guidance expectations, which leaves us well-placed to deliver the refreshed strategy that I communicated in early October.

“Next year marks the bank’s 150th anniversary and 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.”