Rocketing bad debt has seen the Co-operative Bank's annual profits drop by 16%.
Bad debt increased to GBP99.8 million, an increase of over GBP29 million on the prior year. The impact of these charges dented what was otherwise a solid year for the Manchester, UK-based bank.
Net revenue from banking activities increased by GBP21.7 million, while insurance business CIS saw profits of GBP37 million following a modernization drive which the bank says has so far resulted in annualized savings in expenses, commissions and claims incurred of over GBP102 million.
David Anderson, chief executive of the Co-operative Financial Services group, said: The Co-operative Bank’s income has again grown, although an increase in bad debts has resulted in a decrease in pre-tax profits. We have seen a significant increase in the contribution made by our Corporate Banking division as it continues to diversify into different sectors through its distinctive customer offer.