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Co-op Bank profits jump to £132m thanks to higher interest rates
by cityam
CHRIS DORRELL
THE CO-OPERATIVE Bank recorded a big increase in pretax profit in its final year results thanks to higher interest rates.
Across 2022 as a whole, pretax profit increased to £132.6m, up from £31.1m last year. This was primarily a result of higher interest income, which increased 41 per cent on last year.
The bank’s net interest margin – the difference between what it pays out and receives in interest – widened to 166bps, up from 125bps last year.
Banks have seen their income boosted by the Bank of England’s attempt to stave off inflation with a succession of interest rate hikes. The base rate now stands at four per cent, the highest since the financial crisis. However, Slape told City A.M. there’s “a lot more going on” at the bank than higher interest rates. For example, the bank launched two new savings products thanks to its IT simplification programme. Slape added the bank would continue to look for acquisition targets.
