View more on these topics

Coventry reveals profits of £36.2m

Coventry building society has revealed pre-tax profits of £36.2m fuelled by huge growth in its mortgage market share.

The Midlands mutual posted gross mortgage advances of £1.3bn, which it estimates is almost double its natural market share. Its net mortgage lending totalled £338m over the last six months, representing 12.7 per cent of net lending undertaken across the UK mortgage market as a whole.

It also revealed that 1.06 per cent of its mortgage book is more than three months in arrears, compared to the Council of Mortgage Lenders’ average of 2.49 per cent.

Coventry’s current tier 1 ratio is at 12.1 per cent, with 99 per cent of the Coventry loan book now funded by retail savings, reserves and capital – the building society is one of the few UK mutuals to continue to retain an A grade from both Fitch and Moody’s.

Coventry chief executive David Stewart says: “I believe these are excellent results, in particular as we have been operating in some of the most difficult market conditions imaginable – these results demonstrate that Coventry building society remains one of the UK’s strongest building societies.

“We are well funded, and our low cost base, solid capital position and strong asset quality will help mitigate the worst impact of the economic conditions. I am sure we have the right business model for these difficult times, and I continue to be confident for the future.”

Recommended

Friends in need?

Resolution’s acquisition of Friends Provident paves the way for further consolidation in the life sector but advisers have raised concerns over the service levels their clients may receive as a result.

Team spirit

It seems so blindingly obvious that it is almost embarrassing to say it but here goes – advisers should play to their strengths and that is clearly advising.

Healthcare regulation amalgamation predicted for Gulf states

While Dubai is leading the way in terms of legislating for expat healthcare in the Gulf, Qatar, Abu Dhabi and others are watching and learning – that’s according to Jelf International’s director of international services, Doug Rice. He believes the pace of change in the Gulf states will continue and that some level of unified healthcare system will be introduced across the region.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment