Co-operative Bank says recovery still on track

The Co-operative Bank has said it remains on the road to recovery despite nursing a first-quarter loss.

The lender booked an underlying loss of £5.1 million and a pre-tax loss of £28.6 min the first three months of the year, in line with expectations.

Total income nudged up 2 p er cent, driven by strong deposit margins, which helped offset a weaker performance in mortgages.

Chief executive Andrew Best er said :“We’ ve made encouraging progress in the first quarter, reaching some key milestones against a challenging UK retail banking market andunc er tai ne conomic backdrop.”

In February, the bank returned to operating profit for the first time in five years.

Meanwhile, KPMG has been fined £5 ma nd will face regular scrutiny by the accountancy watchdog, the Financial Reporting Council (FRC), as par t of sanctions handed down over its audit of the Cooperative Bank in 2009.