Coventry building society reports pre-tax profit of £56.2m
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Coventry Building Society has reported a pre-tax profit of £56.2m in 2009, up 115 per cent on £26.4m the year before.
The society reported mortgage growth of £919m, representing 8 per cent of net lending in the UK market.
Gross advances for 2009 exceeded £2.7bn, and arrears levels were 0.8 per cent for 2009.
Coventry’s retail savings balances grew by £833m in 2009 and by £5bn in the last three years, and the society maintain that their mortgages are 100 per cent funded by retail savings, capital and reserves.
Coventry Building Society chief executive David Stewart says: “Coventry has performed extremely strongly in what has undoubtedly been a very difficult environment. Our performance is based on the consistent application of a simple business strategy.
“We have been successful in attracting and retaining savings balances and have maintained our track record of growth with responsible lending. These results show that the traditional building society model is alive and flourishing.
“The strength of our relationship with intermediaries has played an important part in our success and we remain committed to the pledges we made before the credit crunch, including no dual pricing and 48 hours notice before product withdrawal.”
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Readers' comments (3)
Anonymous | 2 Mar 2010 1:56 pm
Given that they are paying 1.2% on cash ISAs and 0.25% on their main savings account, if they are funding mortgages mostly from retail savings as they say, I am not surprised -with those margins - that results are good.
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Gerry Watkins | 2 Mar 2010 3:04 pm
To Anonymous at 1.56pm - Given that they are actually paying 4.00%-plus on savings accounts right now, and charging 4.74% on their standard variable rate (less for new business), I think they've done very well to have results like this. We can all pick out examples to suit our arguments if we wish.
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Anonymous | 5 Mar 2010 10:19 pm
The coventry have done very well over the last couple of years , mostly due to the fact that they are responsible in what they lend and who they lend to.
Also they have not closed branches and have the local and traditional feel .
Other banks / buildings society need to look at what they coventry are doing and follow suit.
In terms of there cash Isa I consider that a good rate for what it is instant access
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