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Coventry BS increases lending by 14% in 2011

Coventry Building Society advanced £4bn of new lending in 2011, up 14.3 per cent on the £3.5bn advanced the year before.

The figure represents 2.8 per cent of all mortgage advances in the UK and around 17 per cent of all lending undertaken by building societies and mutual lenders. Net lending totalled £1.7bn in 2011, up slightly on the £1.6bn of net lending the year before.

Impairment charges were just under £10m from a mortgage book totalling £19.2bn. The average loan-to-value of its mortgage book is about 50 per cent.

The percentage of mortgage balances that were 2.5 per cent or more in arrears as at December 31, 2011, totalled 0.79 per cent, down slightly from 0.82 per cent in 2010.

Coventry reported a pre-tax profit of £84.6m, a 12 per cent increase on the £75.3m reported the year before.

Its core tier 1 capital ratio increased slightly from 22 per cent to 22.8 per cent between 2010 and 2011, which is the highest reported by any other UK building society or high street bank.

The building society says it only has around £3.4m of exposure to Irish banks and no exposure to financial institutions or sovereign debt in Portugal, Italy, Greece or Spain.

Chief executive David Stewart says: “I am pleased to report that Coventry Building Society has maintained its track record of strong results, and believe that the Society’s success in serving the interests of its members whilst remaining financially strong, secure and growing, stands comparison with that of any large bank or building society.

“Coventry is the only top ten building society to have increased its savings, increased mortgage lending, remained profitable and grown its assets in each of the five years since the start of the credit crisis. We could not have achieved this leading performance without the support of the intermediary sector.”


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