Manchester-based Co-operative Bank on Thursday announced its first full year of profit in 10 years amid a surge of 185% in its net mortgage lending to £2.4 billion.
Statutory profit before tax was £31.1 million for the 12 months ended December 31, 2021.
Total income rose 18% to £361.5 million as net interest income increased 21% to £323.9 million and customer net interest margin (NIM) increased by 15 basis points (bps) to 161bps “reflecting balance sheet growth at improving margins.”
Co-operative Bank has been looking for takeover and merger deals with rival banks after its approach last year for TSB was rebuffed by TSB owner Banco Sabadell of Spain.
Co-operative Bank CEO Nick Slape said: “Our return to profitability and balance sheet growth at improved margins gives us a strong platform for further growth in the years ahead.
“As ethics and sustainability become increasingly important to consumers, we are working to enhance our product range and services in 2022 as now, more than ever, there is an important role for an ethical bank like us in the marketplace.
“We are working more efficiently and effectively and in the year ahead we will complete the in-housing of all mortgage servicing as we continue to take steps to transform our operations, focused on delivering for our customers.
“This, along with increased cost efficiency gives me the confidence that the bank’s business model, refreshed strategic vision and our stable management team take us forward into our 150th year of ethical banking in a strong position.”