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The Co-operative Bank reports £3.2bn gross mortgage lending in 2022

  • 01/03/2023
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The Co-operative Bank reports £3.2bn gross mortgage lending in 2022
The Co-operative Bank’s gross mortgage lending has come to £3.2bn in 2022 and reported a “significant improvement” in profits.

The bank’s gross lending was down from the 2021 figure of £5.1bn vs £3.2bn in 2022, however Co-op noted that it actively managed new business volumes to preserve Bank margins through 2022.

According to its latest results, the firm reported a mortgage pipeline of circa £1.7bn in 2022, which increased by £100m in the final quarter of last year.

The report added that the profit before tax of £132.6m and underlying profit of £136m, which is an increase of £101.5m and £95m from 2021 respectively.

The firm said that there was a net impairment charge of £6.4m, which is up from £1.1m. The report said that this showed a “deterioration” in the macroeconomic forecasts and adjustments for affordability across secured and unsecured lending due to cost of living pressures.

The Co-operative said that this was partially offset by the net impairment of Covid provision releases and shows “ongoing monitoring” of customer arrears data.

Core mortgage accounts in three months or more of arrears staid stable year-on-year at 0.13 per cent.

The average core mortgage loan to value (LTV) came to 53.5 per cent, which is down slightly from 56.8 per cent.


‘Fully in-house mortgage servicing by Q1’

Nick Slape (pictured), The Co-operative Bank’s chief executive, said that he was “extremely proud” of what the firm had achieved in its 150th year, pointing to a “significant improvement” in profitability.

He added that it had achieved milestones, including the issuance of £250m of senior unsecured debt in March, and full compliance with capital requirements including all buffers one year ahead of plans and de-risking of benefit pension scheme.

“Our IT simplification programme is progressing well with the successful launch of two new savings products, with the final one due to launch in Q1, which will complete the re-platforming of the savings books. We will fully in-house our mortgage servicing capabilities by the first quarter of this year,” Slape added.

“While the macro-economic environment remains challenging, we continue to work hard to ensure that both our customers and colleagues feel supported.

“Looking to the future, we are focused on delivering both growth and attractive, sustainable returns for our shareholders. Our capital position gives us the scope for optimisation as well as continued investment in our group and returns of capital to shareholders. I would like to take the opportunity again to thank our colleagues and customers for their support,” he said.

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