The Co-operative Bank's Platform intermediary lending brand drove its mortgage growth during 2018.
The bank's third quarter results revealed "strong" mortgage originations so far in 2018 and the lender is on course to exceed the £3.2bn in mortgage completions seen last year.
The Co-op Bank has said the third quarter was the highest quarter for mortgage completions in five years, with the majority of this origination driven through its Platform intermediary brand.
During 2018 the bank saw operating costs fall by 14 per cent and its net interest margin - the difference between the interest generated from mortgages to that paid out on deposits - saw an improvement.
Andrew Bester, the Co-op Bank's recently appointed chief executive, said: "The bank has had a positive third quarter, and despite continued competition in the market, our mortgage originations have remained strong with the highest quarter of completions in five years. We have launched new propositions to better support first time buyers, including help to buy.
"Margins are stable with NIM improving year on year, and we achieved a small operating profit supported by strong cost discipline."
He added: "We will focus our energy on a multi-year transformation to fully restore our leading position as an ethical bank. Key to our future will be investing in digital capabilities for our customers."
The bank reported a loss before tax of £87m at the end of the third quarter, a £20.7m improvement compared with the same time last year.
In September 2017 the bank was recapitalised and restructured in a £700m deal with its creditors, which saw the Co-operative Group sell its 20 per cent stake in the business.
The bank's problems stemmed from the takeover of Britannia Building Society in 2009 and the large number of bad loans this exposed the business to. This led to a £1.5bn capital shortfall by 2013.
On top of this the bank found itself at the centre of a controversy over its former chairman, Paul Flowers, a former Methodist minister who was banned by the Financial Conduct Authority after being filmed agreeing to buy cocaine and methamphetamine.
damian.fantato@ft.com
