The Co-operative Bank reports a third consecutive quarter of underlying and statutory profits

The bank has provided an update on its performance in the nine months ended 30 September 2021.

In the third quarter, the bank recorded a statutory profit before tax of £28.5m and underlying profit of £24.9m; which is the third consecutive quarter in which profits have been reported.

Nick Slape, Chief Executive Officer, said: "Total income has increased by 16% and customer net interest margin has risen to 157bps from 144bps year-on-year. Costs have reduced by 8% to £244m on an underlying basis, and have reduced by 14% on an unadjusted statutory basis to £250m year-to-date.

"We have generated a further £1.1bn of gross mortgage lending in the quarter, taking the total in 2021 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 as we enter the final quarter of the year.

"In our SME segment our major investment programme is on track and this quarter we relaunched the business banking website which now provides tailored support to businesses based on their circumstances. This also includes providing enhanced support to start ups with a business concierge service, ongoing relevant information on how to respond to Covid-19 challenges, fraud awareness and protection information and finally access to our award winning request to pay app Incomeing, in partnership with Bankifi.

"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."