In a busy first half of the year the Co-operative saw total gross residential lending of £3.1bn drive net lending of £1.8bn.

It moves into the second part of the year with a mortgage pipeline of £1.5bn at an average margin of approximately 2%.

On the profit from the Bank reported a statutory profit before tax of £21.4m and underlying profit of £12.9m – the second consecutive quarter for profit for the Co-operative.

Nick Slape, chief executive officer at the Co-operative, said: “I am delighted to report that the relentless focus on delivering our plan is driving a strong financial and operational performance for the Bank. As a result of a disciplined approach to cost alongside taking opportunities swiftly as they arise, we have delivered a second consecutive quarter of underlying and statutory profit.

“We have made excellent progress against the strategic priorities that we outlined at the end of 2020, remaining firmly on track to deliver our full year guidance and to return the Bank to sustainable profitability this year.

“The Co-operative Bank is well known as a leader in ethical banking and we have been beyond carbon neutral for 14 years now.

“Earlier this month we were awarded the best ESG rating for any UK high street bank from the leading ESG rating provider, Sustainalytics, and we have also been recognised for driving positive change in our communities. To achieve so much whilst at the same time delivering a step-change in financial performance further validates our long-term strategy.”