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Financial results

Year end financial results for the period ended 31 December 2014

On 27 February 2015, we announced our results for the year ended 31 December 2014.

Highlights include:

Robust financial performance

  • Underlying profit1 increased by 51% to £217.8 million
  • Profit before tax was £201.8 million (2013: £132.1 million)
  • Cost to mean asset ratio was 0.42%, the lowest reported by a UK building society (2013: 0.39%)
  • Impairment charge just £5.4 million from a loan book of £27.0 billion, reflecting the Society's consistent low risk lending (2013: £6.3 million on a loan book of £24.1 billion)
  • Common Equity Tier 1 (CET 1) ratio of 25.4% remains the highest reported by any top 10 building society
  • Leverage ratio of 3.9%2, comfortably above proposed regulatory minimum requirement
  • Maintained strong 'A' credit ratings - Fitch (A) and Moody's (A3)

Growth in mortgage and savings balances

  • New mortgage lending increased by 25% to £7.4 billion
  • Mortgage assets increased by £2.8 billion (12%) to £27.0 billion
  • Net mortgage lending equivalent to 13% of all net mortgage lending in the UK3
  • Savings balances up by £2.1 billion (10%) to £23.4 billion

Doing the right thing for members and the community

  • Consumer champion, Which?, rated the Coventry the highest scoring UK building society featured in the Which? results table for customer satisfaction
  • 89% of the Society's variable rate savings balances pay equal to or above the best buy rates offered by any major UK bank or building society4
  • Over 99% of variable rate cash ISA balances paid equal to or more than 2%, with a weighted average ISA rate on all ISA balances of 2.55% compared to 1.05% in the market5
  • Coventry cash ISAs have been in the national press best buy tables every week for nearly three years, and non-ISA savings products every week for over two years
  • Moneywise Customer Service Awards rated the Society the 'Most Trusted Cash ISA Provider' in 2014 and also 'Best Junior ISA 2014' for an account which has been a best buy since it launched in April 2012
  • Mortgages offered by the Society were in the national press best buy tables every week of 2014
  • During the first half of 2014, the Financial Ombudsman asked for the outcome on complaints referred to it for review to be changed on just five occasions, representing 3% of referred cases compared with 57% for all financial services providers6
  • Staff engagement at 84% is 10% higher than the average financial services benchmark group used by an independent third party
  • The Society, on behalf of its members, has donated nearly £11 million to The Royal British Legion's Poppy Appeal since October 2008

1Underlying profit before tax excludes net (losses)/gains from derivative financial instruments and provision for the Financial Services Compensation Scheme levy
2The leverage ratio calculations shown are in accordance with the definitions of CRD IV, on an end-point basis, as amended by the European Commission delegated regulation. The calculation reflects constraints on the inclusion of Additional Tier 1 capital as proposed by the Financial Policy Committee's review of the leverage ratio. The ratio for 2013 has been updated to reflect this definition
3Source: Bank of England.
4As at 31 December 2014. Average deposit assumed as follows: Variable - £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 Offset accounts. Source: Moneyfacts data
5Source: Bank of England. Average quoted interest rate on all variable rate cash ISAs including bonus as at 31 December 2014
6Source: Financial Ombudsman Service data from 1 January 2014 to 30 June 2014

2014 year end financial results - news release (PDF 196KB)Opens in a new window Opens in a new window

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