Connect with us

Hi, what are you looking for?

Top Stories


Profits rise fourfold at ‘nimble’ Co-op Bank

<?xml encoding=”utf-8″ ??>

The rising cost of borrowing has boosted earnings at Co-operative Bank, which recorded a fourfold rise in profits last year.

The bank, which is no longer part of the Co-operative Group, said that pre-tax profits surged in 2022 to £132.6 million, up from £31.1 million in 2021.

It is the second consecutive year the bank has turned a profit after it was rescued by a group of hedge funds in 2017. It had been on the brink of collapse after a £1.5 billion shortfall was discovered in its balance sheet.

The bank’s boss said the company had benefited from being more “nimble” than the UK’s five biggest banks as it continued its prolonged turnaround.

Since December 2021, Britain has seen the fastest tightening of interest rates in the 26-year history of the Bank of England’s monetary policy committee, with the cost of borrowing rising from 0.1 per cent to its highest level since the financial crisis at 4 per cent.

The Manchester-based lender passes about 60 per cent of every interest rate rise to its savings customers, according to Nick Slape, the chief executive.

“The big five banks have got huge amounts of liquidity because of their market share,” Slape told the Press Association.

“I am at the whim of the HSBCs and the Lloydses: if they wanted to write mortgages at really tight margins then they could do that. They need to feed their machines.

“It is something we have always had to contend with. But we can actually be a lot more nimble, we can nip and tuck. We can pull certain products if we need to, if it’s not competitive.”

Co-op Bank recorded a 41 per cent rise in its net interest income to £458.3 million last year, up from £323.9 million the year before owing to higher earnings from the average loan.

The lender has set aside a net impairment charge of £6.4 million over the year to cover its forecast credit losses.

Slape, 60, who has led the bank since 2020, said in the company’s statement yesterday that the macroeconomic environment “remains challenging”. He said: “We are focused on delivering both growth and attractive, sustainable returns for our shareholders.”

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Editor's Pick

The Board of Investments (BoI) has cleared Sinoma Energy Conservation (Cebu) Waste Heat Recovery Co. Inc. to serve as the operator of a 4.5-megawatt...


In the wake of Covid-19, people are working harder than ever. While many of us thought productivity may dip when we started working from...


Few individuals can resist the temptation to try before they buy; therefore, it was only a matter of time until online casinos realized this...

Editor's Pick

REUTERS WASHINGTON – The chair of the U.S. Senate Commerce Committee on Wednesday asked a regulator to investigate whether Meta Platforms’ Facebook misled its...

Disclaimer:, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2022 Secrets Of Richdads. All Rights Reserved.