The Co-operative Bank has announced first half profits of £46.2 million, representing an increase on the second half of 2007. The mutually owned bank saw profits rise from £45.5 million, despite making writedowns of £25 million on structured investments linked to the credit crunch. Without the writedowns, the bank’s profit would have been up by 56 per cent.
The bank’s sound financial position was made even more impressive by the fact that they rejected over £20 million of loan applications from sovereign wealth funds linked to oppressive regimes as a result of the bank’s strict ethical lending policy. However, the loans, which ‘were rejected because they were sponsored by regimes that fail to uphold basic rights’ – according to the bank – were not an isolated case. In addition, the bank’s annual ethical audit report suggested that it had foregone £14 million of income for ethical and ecological reasons at the end of 2007.
Whilst the bank’s dependence on risky wholesale markets remains low, a growth in corporate and mortgage balances saw overall lending rise by 12 per cent, whilst average customer deposits were 14 per cent higher.
Co-operative Bank Report Increase in Profits
Financial Services > e-banking > Banking news
Co-operative Bank Report Increase in Profits
Fri, 12 Sep 2008
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