CFS reports strong first half banking sales

by Gill Montia

Story link: CFS reports strong first half banking sales

Co-operative Financial Services (CFS), now merged with Britannia Building Society, has reported pre-tax profit of £81.4 million for the 28 weeks to the 25th July, up from £73.4 million in the same period of 2008.

The £8 million increase represents a gain of 11% although profit from the group’s banking activities dipped to £41.7 million, compared with £46.2 million in the first half of last year.

Customer lending saw growth of 12%, which was funded by strong growth in customer deposits (up 21%), and current accounts sales soared 68% higher than a year earlier.

The group’s general insurance business saw profit increase to £14.6 million, compared with a loss of £1.5 million a year earlier.

At the same time, the unit’s claims ratio fell to 73.3% from 74.0% in 2008.

Annualised new premiums for life and savings rose 18% and general insurance sales increased by 27% year-on-year.

At the end of first half of 2009 CFS boasted a capital ratio of 12.8% with a tier 1 ratio of 9.9% and a core tier 1 ratio of 9.2%, all of which the group said reflects the quality of its capital resources.

Chief executive, Neville Richardson, commented: “These are encouraging trading results, which serve to illustrate the strength, sustainability and financial prudence of our business in what remains a very tough economic environment.”

He added: “We are at the start of creating something quite special within UK financial services, a business which is member-owned, customer-led and ethically guided.”