Highlights include:

Strong financial performance

• Record operating profit before impairments and exceptional items of £94.5 million (2010: £85.0 million).
• Record underlying profit¹ before tax, which increased by 12% to £84.6 million (2010: £75.3 million).

Record market share

• Share of both mortgage and retail savings stock increased further, each to record levels.
• Retail savings balances grew by £1.4 billion to £19.0 billion (2010: £17.6 billion).
• Gross mortgage advances of £4.0 billion, representing around 17% of all mortgage advances by building societies and mutual lenders (source: BSA).
• Net mortgage lending of £1.7 billion, equivalent to 18.3% of all net mortgage lending in the UK (source: CML).
• Exceptionally strong funding position evidenced by Coventry's inaugural sterling covered bond issuance of £750 million in April 2011 and first euro covered bond of €650 million in October 2011.

Sustained outperformance throughout financial downturn

Since 31 December 2006, over the five years which have been affected by the credit crunch:

• Coventry achieved the highest organic growth in mortgage and savings market share of any top ten building society.
• The Society has reported strong profits together with organic mortgage and savings growth in each and every year.
• Total assets grew by £12.2 billion (99%).
• Mortgage balances increased by £9.2 billion (93%).
• Savings balances rose £10.8 billion (130%), funding comfortably the substantial growth in mortgages.
• Wholesale funds in excess of £2 billion successfully raised from third party investors during exceptionally difficult market conditions.

'A' rated, class leading efficiency

• Maintained strong 'A' credit ratings throughout credit crunch - Fitch (A) and Moody's (A3).
• Core tier 1 ratio at 22.8%, the highest reported by any building society or major high street bank.
• Cost to mean assets ratio of only 0.37%, the lowest level ever reported by a UK building society.
• Retail savings, capital and reserves equivalent to 104% of mortgages.
• Negligible exposure to Irish banks (just £3.4 million as at 1 March 2012) and no exposure to financial institutions from the following eurozone countries: Portugal, Italy, Greece and Spain.
• No exposure to any sovereign debt from any of the above countries.

High quality mortgage book and very low impairments

• Average loan to value of mortgage book, as adjusted for house price changes, is 50%.
• On the basis of latest available data², mortgage balances 2.5% or more in arrears were just 44% of the industry average (source: FSA).
• Impairment charges in 2011 of less than £10 million from a mortgage book of £19.2 billion.
• No provisions required as a result of the court ruling in respect of the sale of Payment Protection Insurance.

Member focused

• Over 400,000 customers opened new accounts with the Society in 2011.
• Coventry is the largest high street bank or building society never to appear in Financial Ombudsman Service (FOS) tables of complaints – because too few complaints have been referred to FOS for inclusion.
• Low net interest margin maintained for the benefit of members and made possible by cost efficiency and low impairment charges. Consistent value illustrated by:
• Average rate paid on cash ISAs in excess of 2%, compared to a market average of 0.61% (source:BSA).
• 94% of savings balances paid interest in excess of the Bank of England Base Rate.
• Lowest standard variable rate of immediate peer group³.
• Awards received in 2011 include 'Best Building Society' (Your Mortgage), 'Overall Best Savings Provider' (MoneyNet) and 'Best Regional Branch Network' (Your Money).

Strong support for local and national charities

• £5.6 million donated to The Royal British Legion's Poppy Appeal since October 2008.
• 260 local and national charities and community groups supported in 2011.

¹Underlying profit is defined as 'Operating profit after impairment and before exceptional items'.
²30 September 2011.
³Peer group of larger building societies defined as building societies with reported assets of between £5 billion and £50 billion.

Historic financial results

2011

Annual report and accounts 2011 (PDF)
2011 year end financial results - news release (PDF)
2011 interim financial report (PDF)
2011 interim financial results - news release (PDF)

2010

Annual report and accounts 2010 (PDF)
Summary financial statement 2010 (PDF)
2010 year end financial results - news release (PDF)
2010 interim financial report (PDF)
2010 Pillar 3 disclosures (PDF)

2009

Annual report and accounts 2009 (PDF)
Summary financial statement 2009 (PDF)
2009 Pillar 3 disclosures (PDF)

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