The bank said this was a return to “more normalised, pre-pandemic levels” of business compared to a pipeline of £1.2bn for 2021.
It said its mortgage book was stable and low risk as the average loan to value (LTV) came to 53.3 per cent, down from 56.8 per cent last year. The proportion of accounts in arrears greater than three months represented 0.13 per cent of The Co-operative Bank’s book in Q3, which was flat on where it was at the full-year 2021.
Nick Slape, chief executive of The Co-operative Bank, said while the lender was “conscious that customers will be maturing onto higher rates, we are currently seeing no signs of stress across our portfolio”.
Fourfold rise in profit
The bank saw its profit before tax rise to £102.8m in the nine months to 30 September, up from £28.5m last year.
The Co-operative Bank’s net interest income rose 41 per cent to £329.1m and its net interest margin increased by 35 basis points to 1.59 per cent. It said this reflected improved deposit margins following increased to the base rate.
In light of this, the bank has increased its expectations for its net interest margin to 1.65 per cent for the full year.
Slape added: “I am pleased we have reached two very noteworthy milestones this quarter. Firstly, our statutory profit has already exceeded £100m for the first nine months of the year and secondly, but most significantly, we are now fully capital compliant including all buffers for the first time since 2013.
“Our turnaround progress is ahead of schedule, which reflects the strong financial performance and sustained focus on risk management over many years.
“I am proud of what we achieved so far in our 150th year and I would like to take the opportunity again to thank our colleagues and customers for their support.”
