Co-operative Bank posts losses

The Co-operative Bank has posted pre-tax losses of £28.6m in the first quarter in line with expectations, with an underlying loss of £5.1m.

Income increased by 2% due to strong deposit margins that also helped to offset weaker mortgage performance.

The Bank had a 1% growth in lending and deposits with a 5% increase over product switching.

Andrew Bester, chief executive said, “We’ve made encouraging progress in the first quarter, reaching some key milestones against a challenging UK retail banking market and uncertain economic backdrop.

“Another focus area this year is to fix the basics that will provide a platform for development in future years, including concluding the separation of our IT infrastructure from the Co-op Group, and we are making good headway.”

Bester added, “Our brand heritage is a real asset at a time when consumers are increasingly seeking ethical choices and our co-operative values are at the forefront of our new multi-media advertising campaign which launched last month: ‘For People with Purpose.’

“Our values are at the heart of our bank and are important both to our loyal customers and to our future growth.”