Commenting on our results, Steve Hughes, Chief Executive Coventry Building Society, said:

"This is a transformational year with the addition of The Co-operative Bank into the Coventry Building Society Group and it is pleasing to see such a robust performance in the first six months.
 

We remain focused on delivering the right outcomes for our members and customers as we continue our journey of building a purpose-led organisation that will stand out in UK financial services."
 

Performance highlights

• Underlying profit before tax¹ of £200m (H1 2024: £159m)
• Statutory profit before tax of £722m (H1 2024: £159m)
• UK leverage ratio 4.5% (FY 2024: 5.7%)
• 4.3% market share² of mortgages (FY 2024: 3.1%)
•  3.3% market share² of savings (FY 2024: 2.7%)
• 1.7% market share² of current accounts (2024: not applicable)

Strong Group financial performance, whilst effectively managing our underlying cost base

• Statutory profit before tax increased to £722 million (H1 2024: £159 million), including a gain of £584 million on the acquisition of The Co-operative Bank ('the Bank'). The day one gain reflects the agreed purchase consideration being over 40% below the fair value of the net assets acquired.
• Underlying profit before tax increased to £200 million (H1 2024: £159 million).
• Total underlying income of £554 million (H1 2024: £316 million) and net interest margin of 1.24% (H1 2024: 1.05%).
• Group underlying costs of £345 million (H1 2024: £171 million), including £186m of Bank costs. The Society sub group costs remained flat at £158 million (excluding deal related costs in H1 2024), demonstrating our focus on efficiency.
• Leverage ratio of 4.5% (FY 2024: 5.7%) and CET 1 ratio of 19.1% (FY 2024: 28.0%), well above regulatory levels³.
• In the year to date, it is encouraging to see the Bank's performance is in line with expectations, providing confidence in the financial benefits of the acquisition. Good progress is being made in integrating the two organisations.

Delivering for our members and our personal and business customers

• The acquisition of the Bank has increased our market share² of mortgages to 4.3% and savings to 3.3%, and creates an opportunity to build on the 1.7% market share acquired in the personal current accounts segment.
• Excluding the growth associated with the acquisition, Group lending balances remained stable in the period as we focus on capital in a low margin and highly competitive market and given our significant inorganic growth in the period.
• The Group launched a successful limited company buy to let proposition in April, broadening our reach to the residential rental sector with a strong pipeline of applications in the first three months of launch.
• Excluding the growth associated with the acquisition, Group retail savings balances increased by £2.0 billion to £62.8 billion. The Society has continued to offer member value with a £201 million premium⁴ above the market average being paid to members, despite the lower bank rate environment.
• Over 40,000 personal current accounts were opened in the first half with positive net switching of almost 10,000.
• The Society continues its record of outstanding customer service with an NPS score⁵ of +76 and an average call wait time⁶ of just 83 seconds. The Bank has increased its focus on service and it is pleasing to see a material improvement across direct channels, including telephony. At four minutes, the average speed to answer calls is now three times faster than June 2024. 

Supporting our colleagues and the communities we serve

• Colleague feedback and engagement remains a priority during integration. Our latest quarterly survey, which was conducted across the Society and the Bank, shows that 79% of colleagues believe this is a great place to work.
• The Society has been named as one of the UK's Best Workplaces^TM for Development⁷, recognising our commitment to making colleague development a key part of our culture.
• Following on from the £1 million donation to support homelessness in Manchester in December 2024, the Group continues to invest in our communities. Over £1 million ongoing donations have been made in the first half and we remain committed to an additional £1 million to support youth homelessness in Coventry.