The Co-operative Bank Partnership Report

profiting ^{from our shared} principles

Shareholders

In the business world at large, the role of the shareholder tends to focus upon a narrow, short-term profit perspective, to the exclusion of almost any other consideration. Our relationship with our sole equity shareholder, Co-operative Wholesale Society (CWS), couldn't be more different. Having sprung from the same roots, we share the same values; none more fundamental than the belief that business should have a purpose beyond profit. There could be no better illustration of the difference this makes in practice than our performance in 1997. Having delivered recordprofits for the fourth year running, we were delighted that our shareholder has decided not to take a dividend but to allow us to reinvest profits in building an even better bank.

In 1997, The Co-operative Bank achieved record profits for the fourth consecutive year. Profit before tax of £55 million was £9.5 million (21%) higher than last year.

Shared Values - the measure of our relationship with CWS is that our sole equity shareholder is as commited to social responsibility as we are.

[ A shareholder with a difference ]
Our relationship with our sole equity shareholder, Co-operative Wholesale Society, is very unusual indeed. CWS has complete control over the Bank, including the power to appoint our Executive team.

Our pre-tax profits in 1997 were £55 million, up from £45.5 million the previous year, when we paid our shareholder a dividend of £5 million. At the same time, CWS increased its equity investment in the Bank by exactly £5 million.

In addition to our sole equity shareholder, the Bank has a number of Preference Shareholders, who receive a fixed dividend every six months. This externally sourced capital has enabled expansion of our business, without sacrificing control or compromising the shared values of the Bank and CWS.

For proof of that, look no further than the successful defence against the hostile takeover bid launched in 1997, when CWS demonstrated its unswerving commitment to keeping the Bank within the Co-operative Movement, for the long-term benefit of all our Partners.

In our annual Financial Statements we provide a full review of The Co-operative Bank's operating and financial performance.

Our sole equity shareholder, Co-operative Wholesale Society (CWS), is as commited to the idea of social responsibility as is The Co-operative Bank.

Our sole equity shareholder, Co-operative Wholesale Society (CWS), is as commited to the idea of ecological sustainability as is The Co-operative Bank.