Interim financial results for the period ended 30 June 2014
On 1 August 2014, we announced our results for the six months ended 30 June 2014.
Excellent growth in savings and mortgages
- New mortgage lending up 17% to £3.4 billion (30 June 2013: £2.9 billion).
- Net mortgage lending was £1.3 billion, equivalent to 12% of all net mortgage lending in the UK1.
- Savings balances increased by £0.6 billion, to a record £22.0 billion.
Continued strong financial performance
- Profit before tax increased by 82% to £87.9 million (30 June 2013: £48.3 million).
- Cost to mean asset ratio of 0.41% remains the lowest reported by a UK building society.
- Impairment charges just £3.3 million, reflecting the Society's low risk lending both before and throughout the credit crisis.
- Loans where arrears were greater than 2.5% of the balance were 0.58% (including possessions). This represents just 42% of the industry average of 1.37%2.
- Common Equity Tier 1 (CET 1) ratio of 24.6% remains the highest reported by any top 10 building society.
- Successful issuance of £400 million Additional Tier 1 capital in June reflects the Society's strength and record of profitability and increased the Society's leverage ratio significantly above current minimum requirements.
- Maintained strong 'A' credit ratings throughout the 'credit crunch' - Fitch (A) and Moody's (A3).
Doing the right thing for members and the community
- Average variable Cash ISA savings rate of over 2.40%3 - with all Coventry Cash ISAs paying at least 2.00%, comparing favourably against the average market variable cash ISA rate of 1.16%1.
- A Coventry Cash and Junior ISA have been in the national press 'best buys' for over 120 consecutive weeks.
- Average savings rate of over 2.00%3 across all savings balances with over 90% of savings balances paid an interest rate of 1.50% or more4 - three times the Bank of England Base Rate.
- Over three-quarters of all variable savings balances currently held at the Society are paid a rate equal to or higher than the equivalent 'best buy' from any major high street bank or building society5.
- In the most recent table published by the Financial Ombudsman Service, Coventry had one of the lowest proportions of complaints upheld of any high street bank or building society listed.
- No individual member of staff is incentivised to sell products and hasn't been since 2010.
- A further £0.9 million raised for The Royal British Legion's Poppy Appeal during the first six months of the year.
- Recently awarded Most Trusted Cash ISA, Current Account and Savings Provider 2014 by Moneywise.
1As at 30 June 2014. Source: Bank of England.
2As at 31 March 2014. Source: PRA.
3Weighted average interest rate by balances held at 30 June 2014.
4As at 30 June 2014. Excludes Offset accounts.
5As at 30 June 2014. Average non-ISA deposit of £10,000 and ISAs £15,000. Excludes competitor products with restricted availability (e.g. existing customers only or reliant on maintaining or opening another product with the same provider) and Coventry Current/MoneyManager and Offset accounts. Source: Moneyfacts data.
Download the 2014 Interim Report (PDF 624KB)Opens in a new window for the period ended 30 June 2014.
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