Staff at the Co-operative Bank are to receive a £1,000 pay rise to support them amid the cost-of-living crisis in the latest move to help cash-strapped workers.
The group said around 95% of its employees will be eligible for the pay rise, which will take effect in September, with only those on the highest salaries not set to benefit.
It comes after the bank already made a one-off cash payment to lower paid staff earlier this year to help them cope with soaring energy, food and fuel bills.
We remain committed to helping customers and colleagues during these challenging times and services are available to anyone requiring support
Nick Slape, Co-operative bank chief executive
Firms across the banking industry – and the wider corporate sector – have been handing out cost-of-living payments and salary increases to help struggling workers, including Lloyds Banking Group, Barclays and TSB.
Details of the pay rise were unveiled in the lender’s half-year results showing pre-tax profits rebounded to £61.9 million from £21.4 million a year earlier, helped by higher interest rates boosting its profit margins.
The group said the performance was better-than-expected and it upped its full-year guidance for the net interest margin – a key measure for retail lenders.
Chief executive Nick Slape said: “While the economic outlook remains uncertain as we wait to see the full impact of higher inflation and cost of living pressures, we remain committed to helping customers and colleagues during these challenging times and services are available to anyone requiring support.”
The group is reaping the benefits of the transformation plan it launched after being rescued by a group of hedge funds in 2017.
It said: “We have made substantial progress in the first half of 2022 with ongoing profitability and through strengthening of the bank’s capital position with a further capital issuance.
“Whilst there remains intense competition in the mortgage market and tightening of margins, the base rate rises have supported an improvement in deposit margins.”
But it said: “There is still a lot to do as we now look towards the second half of 2022.”