About usOur financial results2011 Interim financial results

2011 Interim financial results

Coventry, the UK's third largest building society, has announced its results for the six months ended 30 June 2011.

Highlights of our first half performance in 2011 include:

Strong financials

• Underlying profit before tax increased by 10% to £51.1 million¹ (2010: £46.5 million).
• Profit before tax of £45.0 million (2010: £43.5 million).

Record market share

• Net mortgage lending of £846 million, equivalent to 25% of all net mortgage lending in the UK (source: CML).
• Gross mortgage advances exceeded £1.9 billion, representing 3% of mortgage lending in the UK and around 19% of all lending undertaken by mutual lenders (sources: CML and BSA).
• Retail savings balances increased to a record £17.7 billion.
• Inaugural public covered bond issuance of £750 million completed in April.

Consistent outperformance throughout credit crunch

In the four years since 30 June 2007:

• Total assets grew by £9.7 billion (75.1%) (excluding Stroud & Swindon, £7.2 billion, 55.3%).
• Mortgage balances increased by £7.8 billion (73.2%) (excluding Stroud & Swindon, £5.9 billion, 55.4%).
• Savings balances rose £9.2 billion (108.5%), funding comfortably the substantial growth in mortgages (excluding Stroud & Swindon, £7.0 billion, 82.0%).

Strong, stable and efficient

• Cost to assets ratio just 0.37%², the lowest level reported by a UK building society.
• Mortgage balances 2.5% or more in arrears less than 44% of industry average on the basis of latest available data (source: FSA).
• No provisions were required to be raised as a result of the court ruling in respect of the sale of Payment Protection Insurance.
• Negligible exposure (£8.5 million) to Irish banks and no exposure to Portugal, Italy, Greece and Spain.
• Core tier 1 ratio increased to 24.1% (December 2010: 22.0%), the highest reported by any UK building society.
• Maintained strong 'A' credit ratings throughout 'credit crunch' - Fitch (A) and Moody's (A3) - with ratings recently affirmed.

¹Underlying profit is defined as operating profit after impairments and before exceptional items.
²Cost to assets ratio has been calculated on the basis of the average of the 2011 and 2010 total assets.

2011 interim financial report (PDF)
2011 interim results – news release (PDF)

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