Interim financial results for the period ending 30 June 2015
On 31 July 2015, we announced our results for the six months ending 30 June 2015.
Record mortgage growth
Mortgage assets up 13% on June 2014, with record advances of £4.2 billion in the first half of 2015 up 25% on the same period in 2014. Record net lending of £1.8 billion is equivalent to an estimated 16% mortgage market share1.
Significant growth in savings
Savings deposit balances have increased by 10% on June 2014, with growth in the first half of 2015 of £0.7 billion. As at 30 June 2015, the weighted average interest rate on all savings balances was 2.02%.
Statutory profit before tax increased by 14.2% to £100.4 million (30 June 2014: £87.9 million).
Sector leading cost efficiency
Cost to mean asset ratio of 0.41%2 (30 June 2014: 0.41%) remains the lowest reported by a UK building society, supporting the Society's ability to offer consistently competitive interest rates3.
Low risk operation
The Society's responsible lending approach protects individual borrowers and the interests of saving members alike. Impairment charges totalled just £0.7 million (30 June 2014: £3.3 million), and loans where arrears (including possessions) were greater than 2.5% of the balance were 0.40%4,(30 June 2014: 0.52%) less than half of the industry average of 1.07%4.
Increased capital strength
Common Equity Tier 1 (CET 1) ratio of 27.9% (30 June 2014: 24.6%) remains the highest reported by a top 10 building society and the leverage ratio of 3.9%5 (30 June 2014: 3.8%5) is comfortably above the current minimum regulatory requirement.
Upgraded credit rating
The Society has been 'A' rated throughout the 'credit crunch' and was recently upgraded from A3 to A2 by Moody's Investor Services.
- Source: Bank of England.
- Administrative expenses, depreciation and amortisation/Average total assets.
- Based on a Coventry Cash ISA, savings account and Junior ISA being mentioned in the national press best buy tables for the period 1 January 2015 to 30 June 2015.
- As at 31 March 2015, latest available industry data - source: PRA.
- The leverage ratio is calculated on an end-point basis, in accordance with the definitions of CRD IV as amended by the European Commission delegated regulation. The calculation reflects constraints on the inclusion of Additional Tier 1 capital, in accordance with the FPC's leverage ratio regime. The ratio for 30 June 2014 has been updated to reflect these latest developments.
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