Co-operative bank exceeds £100m for the first time

CO-OPERATIVE BANK EXCEEDS £100M FOR THE FIRST TIME The Co-operative Bank today (23 April 2002) broke through the £100m pre- tax profit barrier for the first time as it announced record results for the eighth year in succession. The Bank, which next month celebrates the tenth anniversary of its now famous ethical stance, reported pre-tax profits of £107.5m for 2001, up 11.6 per cent (or £11.2m) on the previous year, yet again demonstrating that ethics and profits can go hand in hand. The return on opening equity, after tax, was 21.1 per cent. Operating Income increased by 6.2 per cent to £455.6m and the Cost/Income ratio improved once again, by 1.7 percentage points. Average retail customer deposit balances increased by 24% to reach £4.89 billion, while average retail customer lending balances rose by 16% to £3.54 billion. Provisions for bad and doubtful debts, at 1.71 per cent of advances to customers, represented a slight improvement compared with 2000. Chief Executive Mervyn Pedelty said: "The combination of customer focus, innovative products and quality service, supported by committed people and operating within an accountable framework of social, ethical and environmental responsibility is a powerful formula." Mr Pedelty again stated the contribution made by staff was a key reason for its success. The Bank, which has retained for the second year its listing in the Sunday Times "Best Companies to Work for", has made a long term and sustained commitment to its 'people policies'. "The success of our 'people policies' is, I am sure, a major reason why we have been able to respond so readily to the many operational changes that are necessary to meet business demands in the 21st Century," explained Mr Pedelty. "Of course, the belief in our staff and our investment in their development, is a key element in our ultimate focus of serving our customers." In a major independent survey of customers' satisfaction with their banks carried out by MORI in December 2001, The Co-operative Bank was the only High Street Bank where over 70 per cent of customers expressed themselves as "very satisfied" with their current accounts. The average for all banks was just 48 per cent. During the year, the Bank's reputation for innovation in the personal financial services market was again underlined with the introduction of two "best buy" Visa Platinum credit cards. One has a fixed rate of 9.8 per cent APR guaranteed for five years, while the other has a competitive, variable rate of 13.9 per cent APR with a six months introductory rate of 0 per cent. smile, The Co-operative Bank's internet arm, which recently celebrated its 500,000th account holder, continues to attract praise from both customers and pundits alike. As well as offering a first class on-line banking service, smile now provides its customers with additional investment, insurance and travel services from its website. smile remains the only on-line bank in the world to have achieved the BS7799 standard for Information Security Management. The Bank is also a major banker to the local authority market, gaining the business of eight more councils during the year and, for the first time, is now banker to all ten local authorities within Greater Manchester. The Bank, which was named "Charity Bank of the Year" in 2001, has been similarly successful in the charities sector where it now handles the banking requirements of some of the leading names, including the well-known international charity WWF. The Bank won numerous awards and accolades in 2001, culminating in being chosen as "Company of the Year 2001" at the Business in the Community Annual Awards for Excellence. "This award above all others succinctly reflects the all-round balance of performance we strive to achieve and winning it gave us all a particular feeling of pride," said Mr Pedelty. Ends For further information contact: 23 April 2002 Dave Smith/Paul Lawler The Co-operative Bank Press Office Tel: 0161 829 5522 Fax: 0161 839 4220 e-mail: press.office@co-operativebank.co.uk ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/04/23/20020423BIT00260/wkr0001.doc http://www.waymaker.net/bitonline/2002/04/23/20020423BIT00260/wkr0002.pdf