THE CO-OPERATIVE BANK MAKES RECORD PROFITS AGAIN

THE CO-OPERATIVE BANK MAKES RECORD PROFITS AGAIN The Co-operative Bank, which according to a recent MORI poll has the best net customer satisfaction rating of any high street bank, today (10 April) reported a 14 per cent increase in pre tax profits. This is the ninth year in succession that the Bank, famous for its ethical positioning, has announced record results. The Bank reported pre-tax profits of £122.5m for 2002, up 14 per cent (£15.0m) on the previous year, yet again demonstrating that ethics, coupled with high standards of service, is a formula for financial success. The return on opening equity, after tax, was 19.8 per cent. Operating Income increased by 6.1 per cent to £483.4m and the Cost/Income Ratio improved again despite continued investment in business development. Average retail customer deposit balances increased by 12% to reach £5.48 billion, and average retail customer lending balances rose by 11% to £3.94 billion. Provisions for bad and doubtful debts stood at 1.60 per cent of year end advances to customers, down 0.11% on 2001. Chief Executive Mervyn Pedelty said: "Once again, our commitment to running a responsive, and responsible, business has provided a firm foundation for success. 2002 saw the Bank building on its strong reputation for customer focus, ethical principles, innovative product development and quality service." The Bank's commitment to customer service was borne out by an independent MORI survey, which showed that, in the six months ending December 2002, its net satisfaction was eight percentage points above the average rating for the industry as a whole. The research showed that 97 per cent of the Bank's personal current account customers described themselves as 'satisfied' or 'very satisfied' with the service they receive. The Bank received global recognition when it was chosen as the most socially responsible company in the world - in October 2002 it became the first UK company to take the Special Judges' Award for Overall Corporate Social Responsibility (CSR) performance at the annual New York - based Corporate Conscience Awards. In April 2002, Mr Pedelty was also appointed Chief Executive of Co- operative Financial Services, which was created to bring The Co- operative Bank and Co-operative Insurance Society (CIS) under common leadership. He has spent the past few months carefully putting together an organisational structure and strategy for the new joint operation, which has more than six million customers, £30 billion in assets and employs nearly 15,000 staff. Mr Pedelty said that staff had again played a key role in the success of The Co-operative Bank, which was last month ranked by the Financial Times as one of the top 50 "UK's Best Workplaces 2003." "I have always firmly believed that our people, and their commitment to exceptional levels of customer service, are crucial to our success. The fact that staff opinions about working for the Bank constitute the major reason for our inclusion in the list of the 'UK's Best Workplaces 2003' also gives me considerable personal satisfaction." During the year the Bank extended its residential mortgage portfolio with the addition of several competitive fixed-rate offers and the introduction of both discount and tracker mortgages. The Bank also remained particularly active in the credit card market, regularly featuring in media 'best buy' tables with products such as its Platinum and Gold Fixed Rate cards and its unique Platinum Base Rate Tracker card, whereby cardholders are guaranteed an interest rate fixed at five per cent above Base Rate. smile, the Bank's Internet bank, has established a coveted and distinctive position within the financial services market since it was launched in October 1999. The award-winning Internet bank added several new services during the year including sharedealing and the introduction of a series of investment packages through smileinvest, which provides ready-made portfolios for investors. A new smile credit card was also launched in July 2002, offering customers many "best buy" features. In addition to the global Corporate Conscience Award, in April 2002 a Queen's Award for Enterprise was conferred on the Bank in the Sustainable Development Category for its partnership approach to management, which has helped the Bank achieve its outstanding social and environmental performance. Ends 10 April, 2003 For further information contact: Dave Smith Co-operative Financial Services Press Office Tel: 0161 829 5397 Fax: 0161 839 4220 e-mail : dave.smith@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/2003/04/10/20030410BIT00400/wkr0001.doc http://www.waymaker.net/bitonline/2003/04/10/20030410BIT00400/wkr0002.pdf