Manchester-based Co-op Bank on Thursday published a first quarter trading update for the three months ended March 31, saying it made profit before tax of £30.5 million, up from £7.2 million profit for the same period of the prior year.

This marks the fifth consecutive quarter of profitability for the bank.

Co-op Bank said its Q1 total income of £110.2 million, which included net interest income and other operating income, increased 36% on the three months ended March 31, 2021.

Net interest income increased 40% to £99.9 million driven by higher mortgage balances at improved margins, supported by improving deposit margins following the increases in the base rate to 75bps.

Net interest margin rose to 1.46% from 1.19%.

Co-op Bank CEO Nick Slape said: “Our Q1 2022 profit of £30.5m is our 5th consecutive quarterly profit and marks four quarters of sequential quarter on quarter underlying profit growth.

“I am really proud to report on the progress that we are making with our transformation plan and other commitments.

“In March we issued £250m of MREL-qualifying funds, the inaugural issuance under our Green, Social and Sustainability Financing Framework.

“I was encouraged by the number of new investors involved in this transaction, the result of the strong link to ESG commitments and the acknowledgment of the progress the Bank has made in its turnaround.

“The issuance ensures good progress towards meeting end-state MREL requirements by the deadline of 1 January 2023, and is further evidence of market confidence in the Bank, with pricing improved by 3pp compared to the MREL senior unsecured issuance at the end of 2020.

“I would like to thank our customers and colleagues for their huge generosity and the support shown to our charitable partners in response to the ongoing humanitarian crisis in Ukraine.

“I was extremely proud of the speedy and decisive response to our appeals, and in our 150th anniversary year, it serves as a timely reminder of how co-operative values remain as relevant now as they were when we were first created.

“We are currently mid-way through our ambitious transformation plan to rationalise our mortgage and savings platforms and bring our mortgage servicing operations in house.

“These changes enable us to invest in simpler transactional journeys with an enhanced customer experience.

“The progress we have made along with the steps we are taking to improve recruitment and retention in light of the challenging environment give me the confidence that we will achieve the objectives set at the start of the year.”