Savings balances were up 6%.

2019 was all about drawing a line under the legacy issues which have held the Bank back for a number of years and was the first phase of its five-year turnaround plan.

The bank completed separation of IT from the Co-operative Group, digitalised customer service, reinvested in its brand and reduced the legacy assets in its loan book, which are now down to 5%.

The Co-operative Bank continues to be loss making at this stage and underlying loss is in line with expectations at £19.7 million.

Statutory loss before tax was £152.1 million, including strategic investment of £96.6 million to deliver transformation and a PPI charge of £62.5 million. In comparison to 2018 this is an improvement of 11% excluding legacy PPI.

Going forward, investment will centre on brand, further enhancing its digital proposition, simplifying the mortgage and savings platforms and building on its SME franchise.

Andrew Bester, Chief Executive Officer, said: “In 2019 we successfully completed the first stage of our five year turnaround plan and our achievements have put in place a platform for growth for the years ahead.

“Our IT systems are now separated from the Co-op Group, we have a high-quality, low-risk loan book and our legacy assets are less than 5% of our balance sheet.

“While there is still work ahead, we have significantly improved our digital proposition and reinvested in our distinctive ethical brand.

“Our underlying losses are in line with expectations and the higher statutory loss reflects our investment in transformation and the impact of higher than expected levels of PPI claims felt industry-wide.