The Cooperative Bank, which also provides insurance, has reported a slight drop in profit for the six months ending in September.

Among the key highlights of the firm include a profit after income tax of $5.6 million, down 2% from 2017. Its bad debts were $600,000 higher, loans and advances grew at an annualised 8.0% and deposits grew 4.2%. Its capital adequacy ratio is 17.2%, which the bank noted continues to be one of the highest in the New Zealand banking market.

“The decline in profit was due to fee reductions of several million dollars offset by benefits of continued customer and balance sheet growth,” Cooperative Bank chairman Brendan O’Donovan said. “Expenses were up 5.6%, due to increased technology spend and higher staff costs.”

The bank’s insurance business Co-op Life, meanwhile, showed improved performance with a net operating income of $4.2 million for the six months ending in September, up 13% from the previous reporting period.

O’Donovan also commented on the recently completed review by the Reserve Bank and Financial Markets Authority into the New Zealand banking conduct.

“From a Co-op Bank perspective we welcome the review and will implement any recommendations relevant to us,” he noted.