Co-op has a bumper year; BANKING: yourmoney.Byline: GRAHAM HISCOTT THE Co-operative Bank has cashed in on the credit crunch Credit Crunch An economic condition whereby investment capital is difficult to obtain. Banks and investors become weary of lending funds to corporations thereby driving up the price of debt products for borrowers. ... by being boring. Profits leapt 70% to pounds 85.6million as customers switched from big high-street rivals who were humiliated hu·mil·i·ate tr.v. hu·mil·i·at·ed, hu·mil·i·at·ing, hu·mil·i·ates To lower the pride, dignity, or self-respect of. See Synonyms at degrade. into asking for bail-outs because of risky lending. Many banks came a cropper CROPPER, contracts. One who, having no interest in the land, works it in consideration of receiving a portion of the crop for his labor. 2 Rawle, R. 12. when the credit crunch froze wholesale money markets on which they relied. In contrast, the Co-operative retail banking arm is fully funded from customers' deposits. Boss David Anderson said: "Boring is the new black." The last year saw retail deposits up 17%, new mortgages up 24% and business accounts up 27%. But profits at Co-operative Financial Services dropped from pounds 155.4m to pounds 147m because of problems within the insurance arm of the business. It made pounds 8.4m, down sharply from pounds 67m the previous year when it was doing bumper trade, but also as a result of a fall in investment values.. |
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