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Profits rise at Co-operative Financial Services

Profits rise at Co-operative Financial Services

Category: Banking

Updated: 04/04/2011
First Published: 26/08/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Co-operative Financial Services has reported a 34% rise in operating profit over the first half of the year.

The ethically-guided bank revealed total operating profits for the period of £109.3 million, up from £81.4 million in the first half of 2009.

The bank said customer deposits were up by £1.4 billion, a rise of 4.2%, reflecting its retention of 97% of its fixed rate ISA balances, as well as the attraction of significant new funds.

Meanwhile, like-for like mortgage applications have grown by 31%, having advanced £1.1 billion to mortgage customers over the past six months.

A 32% rise in new general insurance policies was also reported.

A year has now passed since the bank merged with Britannia Building Society, and it appears the venture has been a successful one.

The Co-operative said that it had successfully integrated two complementary businesses, and was an operation which had already delivered significant cost synergies.

It added that as a sustainable alternative to the traditional financial services model, it had shown itself well placed to capitalise on current market conditions.

"As UK consumers increasingly question the financial services 'status quo',
Co-operative Financial Services' member-owned, customer-led and ethically-guided business model is well placed to establish itself as the UK's most admired financial services provider," concluded the report.

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