The Bank also reported a mortgage pipeline going into the second quarter of 2021 of £2bn.
Nick Slape, Co-operative Bank chief executive, said: “I am encouraged by the Bank’s financial performance in the first quarter, achieving a small underlying profit – an important first step towards sustainable profitability from 2021.
“We have delivered a resilient performance by maintaining our focus on income generation, simplification and by reducing our operating costs.
“Our retail business continues to grow, with net residential lending increasing by 6% in the quarter with a strong pipeline.”
The results also revealed that investment firms JC Flowers and Bain Capital Credit had bought stakes in the Bank subject to regulatory approval.