The Cooperative Bank has reported a slight decline in profit for the six months ending in September.
Key highlights include a profit after income tax of $5.6 million, down 2% from 2017. Its bad debts were $600,000 higher, and deposits grew 4.2%.
Its loans and advances, which include residential mortgage loans, grew at an annualised 8.0% to $2.4 billion. Its capital adequacy ratio is 17.2%, which the bank noted continues to be one of the highest in the New Zealand banking market.
“The decline in profit was due to fee reductions of several million dollars offset by benefits of continued customer and balance sheet growth,” Cooperative Bank chairman Brendan O’Donovan said. “Expenses were up 5.6%, due to increased technology spend and higher staff costs.”
The bank’s insurance business Co-op Life, meanwhile, showed improved performance with a net operating income of $4.2 million for the six months ending in September, up 13% from the previous reporting period.
O’Donovan also commented on the recently completed review by the Reserve Bank and Financial Markets Authority into the New Zealand banking conduct.
“From a Co-op Bank perspective we welcome the review and will implement any recommendations relevant to us,” he noted.