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Co-op anticipates return to profit in 2021 with mortgage lending to drive growth

  • 25/02/2021
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Co-op anticipates return to profit in 2021 with mortgage lending to drive growth
The Co-operative Bank reported an annual loss but said net mortgage lending grew over the year, as the lender plans to grow its mortgage book further in 2021.


The lender announced a statutory loss before tax of £103.7m, which was an improvement on the £152.1m lost in 2019, despite putting aside a Covid credit impairment charge of £21.6m.

Net residential lending is up 5.2 per cent, taking the book to £841.1m. The bank did not disclose its gross mortgage lending figures.

Co-op said it had helped more than 11,000 customers buy a new home and completed over 11,000 remortgages.

The bank revealed it had granted 20,523 mortgage and unsecured payment deferrals, with 92 per cent resuming repayments, with one per cent of the balances now in arrears.

In a statement, Co-op said: “It is clear that the Covid-19 pandemic has had a significant impact on the group and may continue to present further risks and challenges in both the short and medium term.”

However, the bank said it anticipates a return to profitability in 2021, with growth in retail mortgages helping to turnaround fortunes.

Nick Slape, chief executive, 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.

“The performance in mortgages and the continued growth of our SME franchise has been particularly pleasing, with net residential lending up five per cent at improved margins and our SME business going from strength to strength.

“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.”


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