Operating profit at UK-based Cooperative Bank
(Coop) has slumped by 90% year-on-year to £11.3m  ($17.9m) for
the six months to 30 June (H111 £108.6m).

The retail banking unit of the Coop (including
the Coop, Britannia and smile brands) outperformed other units
within the group: retail banking profit fell by 44% year-on-year to
£32m (H111 £57.8m).

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

First half highlights for the Coop
included:

  • Stable core tier 1 ratio of 9.6% (unchanged from June 2011 and
    December 2011);
  • Customer numbers growth: successful account switching
    initiatives boosted an increase in primary current account numbers
    by 3.3% in the first half of 2012; In the first six months of the
    year, 5% more customers switched to the Coop from their compared
    with the same point last year;
  • The retail mortgage book performed well and arrears reduced
    during the first half with late mortgage arrears (>2.5% of
    balance) down from 1.18% at December 2011 to 1.03% at June
    2012;
  • High levels of customer advocacy, 9.3% above the average of its
    top five competitors;
  • The launch in June of the bank’s first mobile banking
    application;
  • The Coop remains well funded with a loan-deposit ratio broadly
    in balance at 101%;
  • Impairment losses were broadly flat year on year, and
  • Reaching agreement to acquire the 632 branches being sold by
    Lloyds Banking Group.

Less negative metrics included a near-doubling
in first half bad-debt charges to £91.9m (H111 £46.1m), due
principally to charges on the Coop’s non-core corporate loan
portfolio.

Retail banking net-interest income fell by
£14.8m at the half year while non-interest income also fell
compared with last year.

The Coop was suffered a £40m hit relating to
further provisions for the mis-selling of PPI and incurred an
additional £20m of transaction costs relating to the Lloyds’
branches acquisition.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Looking ahead, the Coop warned that impairment
pressures are unlikely to significantly abate in the short
term.