Manchester-based Co-op Bank said its profit before tax was flat at £61.8 million in the six months ended June 30, 2022, as total income rose 16% to £266.5 million.

“Net interest income increased by 18% to £245.1m (1H 22: £208.2m) and net interest margin (NIM) has risen by 33 basis points (bps) from 151bps to 184bps, with both benefitting from increases in the base rate,” said Co-op Bank.

“The SVR-based (Standard Variable Rate) component of our EIR (Effective Interest Rate) asset is £25.8m and is underpinned by an assumption of a refinancing period of 0.5 months for the whole fixed rate mortgage book (10% of our customers reverting to SVR and then those customers spending an average of 5 months there before refinancing).

“In the last 6 months we have observed more customers reverting to SVR.”

Co-op Bank CEO Nick Slape said: “In the first half of 2023, we have delivered a strong financial performance with a statutory profit before tax of £61.8m and a statutory return on tangible equity of 13.0%.

“We have made good progress on our mortgage and savings transformation program having launched a third new savings product, completed the insourcing of Capita colleagues and migrated c.60% of our existing savings accounts.

“Our low risk balance sheet and strong capital and liquidity positions provide a resilient foundation from which to focus on our customer driven goals in an uncertain macro-economic environment.

“I am pleased to see the investment in our customer proposition being validated and, looking to the future, I am excited by the opportunity to leverage our technology re-platforming to the benefit of both customers and colleagues alike.

“We recognise the financial challenges that the current economic uncertainty and the cost of living crisis poses for a number of our customers and colleagues and we will continue to support them. We are proud to have signed up to the recent ‘Mortgage Charter’ offering tailored help to those customers who need it.”