Through 2021 Co-operative Bank delivered £5.1bn of gross lending in the year, with net mortgage lending of £2.4bn which was 185% higher than in 2020.
The Bank reported a statutory profit before tax of £31.1m and underlying profit of £41.0m; (an increase of £134.9m and £105.0m vs FY 20).
This is the first profit reported by the Bank in 10 years and marks the turnaround of the Bank and return to sustainable profitability.
Nick Slape, chief executive officer, said: “2021 has been a milestone year for The Co-operative Bank, in which we have delivered against the ambitious turnaround plan set three years
ago to significantly improve the financial strength and stability of the Bank.
“I am delighted to report our first full year of profit in 10 years, signalling a return to sustainable profitability, with a statutory profit before tax of £31.1m. These positive results demonstrate that our position on ethical and social matters is not only good for our communities, but also delivers strong commercial outcomes.
“In 2021 our Environmental Social and Governance (ESG) credentials have received external validation from Sustainalytics, a leading ESG ratings agency, which identified the Bank as the UK’s best ESG rated high street bank.
“In August, we launched our sixth Values and Ethics poll, a unique consultation of the environmental and social issues that are important to our customers and colleagues.
“We will use their responses to inform and update our unique Ethical Policy – which guides how we do business and the causes we support – and will be relaunched later this year.
“Our return to profitability and balance sheet growth at improved margins gives us a strong platform for further growth in the years ahead. As ethics and sustainability become increasingly important to consumers, we are working to enhance our product range and services in 2022 as now, more than ever, there is an important role for an ethical bank like us in the marketplace.
“We are working more efficiently and effectively and in the year ahead we will complete the in-housing of all mortgage servicing as we continue to take steps to transform our operations, focused on delivering for our customers.
“This, along with increased cost efficiency gives me the confidence that the Bank’s business model, refreshed strategic vision and our stable management team take us forward into our 150th year of ethical banking in a strong position.
“I would like to extend my thanks to our valued customers for their continued loyalty and to the Board, the management team and all colleagues for their commitment and determination.”
