The corporate banking division of the Co-operative Bank has seen a record half-year as customers turned away from high street rivals.
The bank said it was doing well because nervous customers of other banks were turning to brands they perceived as more trustworthy.
In the first half of the financial year to July 26, the corporate banking division’s lending balances stood at £3.6 billion, an increase of more than 25 per cent on the same period the year before.
Operating profit for the half year rose by 38.2 per cent to £44.1 million.
The bank has taken a cautious investment strategy in recent years that it said left it less exposed than some banking rivals to bad debt, high-risk “toxic” investments and other damaging consequences of the credit crunch.
A spokesman for the Co-operative said clients from other banks were now looking to do business with its Corporate Banking Centres (CBCs) in ever growing numbers after finding it difficult to secure funding due to the current economic climate and the impact it has had on some banks’ willingness to lend.
And the growth in deals funding was driven by the ongoing expansion of the bank’s network of CBCs, which has grown to a total of 17 this year.
Chris Sallnow, senior corporate manager at the Birmingham Corporate Banking Centre, said: “We continue to be active in the market because we are well funded by our customers and have a strong capital base. We’re in good shape and able to support our customers.
“Our aim is to spread our geographical reach and we’re not deterred by current market conditions. This bank is a consistent player and is in the market for the long term.”
“It’s at difficult times like this that our established relationship banking and partnership approach really comes into its own,” he said.
Mr Sallnow said he expected corporate banking to grow in some areas, such as the public sector, charity and social enterprise, PFI and renewable energy and commercial property.
Caution pays off for clients
of Co-op Bank
The corporate banking division of the Co-operative Bank has seen a record half-year as customers turned away from high street rivals.
The bank said it was doing well because nervous customers of other banks were turning to brands they perceived as more trustworthy.
In the first half of the financial year to July 26, the corporate banking division’s lending balances stood at £3.6 billion, an increase of more than 25 per cent on the same period the year before.
Operating profit for the half year rose by 38.2 per cent to £44.1 million.
The bank has taken a cautious investment strategy in recent years that it said left it less exposed than some banking rivals to bad debt, high-risk “toxic” investments and other damaging consequences of the credit crunch.
A spokesman for the Co-operative said clients from other banks were now looking to do business with its Corporate Banking Centres (CBCs) in ever growing numbers after finding it difficult to secure funding due to the current economic climate and the impact it has had on some banks’ willingness to lend.
And the growth in deals funding was driven by the ongoing expansion of the bank’s network of CBCs, which has grown to a total of 17 this year.
Chris Sallnow, senior corporate manager at the Birmingham Corporate Banking Centre, said: “We continue to be active in the market because we are well funded by our customers and have a strong capital base. We’re in good shape and able to support our customers.
“Our aim is to spread our geographical reach and we’re not deterred by current market conditions. This bank is a consistent player and is in the market for the long term.”
“It’s at difficult times like this that our established relationship banking and partnership approach really comes into its own,” he said.
Mr Sallnow said he expected corporate banking to grow in some areas, such as the public sector, charity and social enterprise, PFI and renewable energy and commercial property.”
