Co-op Bank sees strong mortgage growth

Michael Lloyd

November 7, 2019

The Co-operative Bank has seen strong mortgage growth according to its latest trading update for Q3.

Balances were up 3.4% driven by £2.6bn of new business completions and increased levels of customer retention.

The average LTV of the mortgage book remained stable at 56.3%.

The bank’s underlying profit was £2.3m year-to-date with total income down 2% year-on-year.

Andrew Bester, chief executive at the Co-operative Bank, said: “We are continuing to make positive progress and delivering our plan in what is a challenging UK retail banking market, against ongoing economic uncertainty.

“We continue to put the needs of our customers first, making enhancements to our customer journeys.

“We have achieved ongoing growth in our mortgage book thanks to some agile pricing and strong broker relationships, supported by growth in both our Retail franchise and SME deposits.”

In September the bank said it expected a further PPI provision of £55m to £75m to be required following a greater number of complaints and enquiries than expected in the final month prior to the complaint deadline.

Bester added: “While we have incurred charges in respect of higher than expected PPI complaints in the third quarter our underlying performance is encouraging and many of the issues that are key to our development in future years are being addressed.

“Significant improvements to our digital proposition, progress towards the separation of our IT infrastructure from the Co-op Group, and continued investment in our distinct ethical brand have supported our resilient business performance this quarter.

“A market where consumers are seeking greener and ethical choices presents an opportunity for the Co-operative Bank. These actions will provide a platform for the bank’s development in future years.”

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