Co-op Bank reports third consecutive quarter of profits

Co-op Bank reported its third consecutive quarter of profits on Friday as its turnaround strategy bears fruit.

For the nine months to 30 September, the bank reported a statutory pre-tax profit of £28.5m compared to a loss of £61.8m in the same period a year earlier. Meanwhile, total income rose 16% to £259.2m.

Co-op - whose offer for Banco Sabadell’s British bank, TSB, was rejected last week - said it generated a further £1.1bn of gross mortgage lending in the third quarter, taking the total for this year to £4.1bn.

Net residential lending now stands at £2.2bn for 2021 and is equivalent to a 13% increase in mortgage balances, with a "strong" pipeline heading into the final quarter.

Chief executive officer Nick Slape said: "Looking to the future, I am pleased to confirm that we are tracking in line with, or ahead of our guidance expectations which leaves us well-placed to deliver the refreshed strategy that I communicated in early October.

"Next year marks the Bank’s 150th anniversary and these results further demonstrate that our position on ethical and social matters is not only good for our communities, but also delivers strong commercial outcomes. I firmly believe that doing good is aligned with doing well in business."