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Coventry reports 20% profit hike

Coventry Building Society has revealed a 20 per cent increase in half-year profits of £43.5m and a hike in new mortgage lending to £751m.

Coventry lent £1.6bn of mortgage advances over the period, accounting for 18 per cent of all building society lending.

Coventry’s retail savings balance also increased by £1.7bn, or 13 per cent. Net retail receipts accounted for 8 per cent of all building society receipts.

The mutual also reported a core tier one ration of 26.9 per cent, the highest in the sector.

Coventry chief executive David Stewart says: “We have been able to report an excellent financial performance because Coventry’s simple business model was equipped to cope with the events of the past three years.

“In particular, we have remained very much open for business, lending at modest loan to value ratios and to low risk borrowers. The increase in margins available for new mortgages means that our ability to continue to lend has helped support profitability.”

Coventry will merge with Stroud & Swindon Building Society on September 1, 2010, which it says will further increase its mortgage and savings balances.

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