Co-op Bank reports reduced loss of £103.7m

The Bank, which is no longer owned by the Co-op Group but maintains links to the movement via the Hive, hopes to return to profit

The Co-operative Bank has recorded a pre-tax loss of tax of £103.7m (down from £152.1m in 2019) for the year to 31 December 2020. 

The Bank said it had enjoyed a resilient financial performance in challenging environment, with its performance targets  met or exceeded in line with its plan. Updated guidance expects it to return to profitability from 2021.

It reported a high quality loan book with low-risk credit profile, and said it was supporting customers through the Covid-19 crisis, with growth in SME customers and strong residential mortgage lending. It has granted over 20,500 payment deferrals to support customers with mortgage, loan and credit card payments

CEO Nick Slape said: “Our priority has been to provide customers with the support and reassurance they have needed during this period and to navigate a challenging retail banking market and uncertain economic conditions. 

“We end the year having delivered a resilient financial performance that is in line with our plan at this stage in our transformation, and having completed a number of key milestones including separation of IT systems from the Co-op Group, improved digital journeys for our customers, and the issuance of £200m of MREL-qualifying debt. 

“As we face into continued difficult times for many people and businesses, we remain committed to providing the support required as well as
continuing to make a positive impact on the environment and the world around us. This matters now more than ever and we are proud of our
record as a beyond carbon neutral bank since 2007, saying no to financing fossil fuels and companies with a poor environmental impact.

“As we look to the future, our commitment to ethical banking will
remain central to our strategy, and we intend to link part of executive pay to ESG targets from 2022 onwards.””

The Bank is no longer owned by the the Co-op Group following the financial crisis of 2012. But it has kept the name in line with its ethical policy and support for the movement via the Hive support organisation for co-ops.

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