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2010 Interim financial results

Coventry, the UK's third largest building society, on 18 August 2010 announced its results for the six months ended 30 June 2010.

Highlights include:

Strong financials

• Underlying profit before tax increased by 40% to £46.5 million.¹
• Profit before tax increased by 20% to £43.5 million.
• A further £971,000 to be donated to the Poppy Appeal, bringing total donations since October 2008 to significantly above £3.5 million.

Record market share

• Net mortgage lending of £751 million, equivalent to 31% of all net mortgage lending in the UK. (source: Bank of England).
• Gross mortgage advances of £1.6 billion, representing 18% of all mortgage advances by building societies and mutual banks. (source: BSA).
• Retail savings balances grew by £1.7 billion (13%) during the first half of 2010.
• Net retail receipts equivalent to 8% of net retail receipts of all UK banks and building societies. (source: BSA).

Consistent outperformance throughout credit crunch

• In three years since 30 June 2007:
• Total assets grew by £6.5 billion (50%).
• Mortgage balances increased by £4.2 billion (39%).
• Savings balances rose £6.4 billion (76%), funding comfortably the substantial growth in mortgages.

Strong, stable and efficient

• Cost to mean assets ratio of only 0.37% (2009 first half year: 0.39%), the lowest level reported by a UK building society.
• Cost to income ratio reduced to 40.5% (2009 first half year: 45.4%).
• On the basis of latest available data, mortgage balances 2.5% or more in arrears remain less than 40% of industry average (source: FSA).
• Retail savings, capital and reserves equivalent to 106% of mortgages.
• Core tier 1 ratio of 26.9%, the highest reported by any building society.
• Maintained strong 'A' credit ratings throughout 'credit crunch' - Fitch (A) and Moody's (A3).
• Merger with Stroud & Swindon will complete on 1 September 2010. Integration plans are on track.

¹Underlying profit is defined as operating profit before exceptional items.

2010 Interim Financial Results - News Release (7 page PDF)

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