Co-op Bank profit, income rise on higher interest rates

Profits and income both jumped at the Co-operative Bank as it became the latest lender to benefit from higher interest rates and borrowing costs.

First-quarter net interest income – the difference between loans charges and savings rates – soared by 20% to £120m as the Bank of England lifted its benchmark base rate to 4.25% last month. Pre-tax profit edged up slightly to £30.6m.

The bank, which was at the centre of a scandal five years ago before a hedge fund-backed rescue, was recently the subject of speculation that it could be putting itself up for sale.

Reporting by Frank Prenesti for Sharecast.com