Cooperative Bank posts underlying profit before tax of £35.1m, up 28% y-o-y. Other highlights include a 20.2% rise in net interest income, boosted by improved deposit margins. Specifically, the net interest margin is ahead by 35 basis points from the year ago quarter to 1.81%.
Nick Slape, CEO said: “In the first three months of 2023 we have again delivered a strong business performance with a statutory profit before tax of £30.6m and a statutory return on tangible equity of 15.1%. In particular, I am pleased with the 28% improvement in underlying profit in the period to £35.1m. I remain confident that the Bank is well-positioned in the current uncertain macroeconomic environment, with surplus capital and liquidity and a low-risk simple balance sheet. Our unique position as the leading ethical Bank in the UK, combined with targeted investment to transform and simplify our operations, will enable us to continue to make it easier for our customers to interact with us, whilst delivering sustainable returns for our shareholders.”
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Cooperative Bank Q1 2023 cost income ratio rises
Less positive metrics include a rise in the Cooperative Bank cost-income ratio. That rises from 73.2% in the year ago quarter to 77.1%.
Operating expenditure increase by 20% to £101.5m. This is mainly driven by an increase in staff costs following cost of living payments and salary increases during 2022. The bank also incurs higher recruitment charges during 2022.
Earlier this month, the Cooperative Bank was reported to be considering putting itself up for sale. However, Reuters reported that it was also considering potential mergers, acquisitions or a potential IPO. In March, talks between Coop Bank and Sainsburys Bank regarding a potential mortgage portfolio sale broke down.
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