Member Article

Co-operative bank delivers slightly ahead of expectations

Co-operative bank which is headquartered in Manchester have released a trading statement this morning showing that it is delivering slightly ahead of expectations.

The bank also reported that the closure of 57 branches which was announced in January will be completed by July 2015.

The stats

The bank report that its mortgage applications and completions are above planned expectations during Q1 2015 with completions totalling £500m.

Its net interest income is also slightly ahead of expectations, and its competitive mortgage rates are the UK’s lowest ever headline 2 year fixed rate of 1.09%

The analysis

The bank reports its cost reduction programme remains on track and that it continues to invest in its brand with a new advertising campaign based around its ethical credentials.

The bank also reports that its net interest income is slightly ahead of expectations due to pricing actions on retail deposits lowering funding costs.

The comment

Chief executive, Niall Booker said: “During the first quarter of this year, we have continued to progress our turnaround plan based on de-risking the business and reshaping the Bank around our individual and small business customers.

“The initial securitisation of part of the Optimum portfolio is an important step in further reducing our risk profile and increasing our resilience. In addition, although the Core bank remains very much a work in progress, we are beginning to see performance improve and the launch of a series of competitive product offerings is testament to how far we have come in the last year.

“There is considerable work ahead to address legacy issues across all areas of the business.

“Furthermore, the Bank remains exposed to external macroeconomic conditions, including the timing of future interest rate rises and market conditions to support successful asset disposals, but we are pleased with the progress management has made in the areas we control and in what remains the early stage of our recovery.”

The summary

The bank is delivering slightly ahead of expectations and its cost reduction policies are going well with the closure of 57 branches to be completed by July 2015.

This was posted in Bdaily's Members' News section by Sophia Taha .