Coventry Building Society delivers a resilient performance, providing outstanding service to members and continuing to invest for the future.
Steve Hughes, Chief Executive, Coventry Building Society, said on announcing the Society's 2020 Annual Results:
"I was immensely proud to join the Society in April as the impacts of the Covid-19 pandemic were just emerging. Since then the ongoing health crisis, combined with the economic and social impacts of ongoing lockdown restrictions, have had a major impact on us all. I would like to thank key workers across the country for all they have done and my thoughts go out to everyone who has been impacted by the pandemic."
"It meant, of course, that 2020 has been an unprecedented year. But we remained open for business, continuing to meet the needs of our members and customers and providing great service. We continued to invest for the future whilst delivering a robust financial performance and balancing the needs of borrowers, savers and those in financial difficulty. I am proud of my colleagues who have lived our Values and our belief in putting members first."
Annual Results for the 12 months ended 31 December 2020 include:
Mortgage balances grew by £1.2bn (3.0%) to £43.5bn.
Savings balances grew by £1.9bn (5.0%) to £38.2bn.
Additional Member value:
The average weighted savings rate paid to members was 1.18%, 0.55% higher than the average paid in the market and equivalent to an additional £197m1 in interest to savers.
Positive Member outcomes:
The Society's overall Net Promoter Score2 was +73 during a period of exceptional concern for members and disruption to normal operations. The Society continues to report one of the lowest complaint overturn rates by the Financial Ombudsman Service. During the year, the Society supported over 39,000 borrowers with payment holidays.
Profit before tax of £124m (2019: £147m). Net Interest Margin recovered in the second half of the year following the Bank of England Base Rate reduction in March. Although the mortgage book continues to perform well, the Society increased provisions by £36m to cover potential future credit losses.
2020 profits maintained the Society's strong capital position:
Common Equity Tier 1 (CET 1) ratio remains well above statutory requirements at 33.0% whilst the Society's Leverage Ratio on a UK modified basis increased to 4.6%. The Liquidity Coverage Ratio of 179% is also considerably above the regulatory minimum requirement.
Leading cost efficiency:
At 0.49%3 the Society continues to report amongst the lowest cost to mean assets ratio of any UK building society, whilst continuing to invest significantly in its technology infrastructure and digital capability.
Outstanding employee engagement:
No employee was furloughed and 75% of office-based colleagues have worked from home since the first lockdown on 23 March 2020. The Society is rated 'Extraordinary' for employee engagement and was recognised for being 2nd in the Sunday Times Best Large Companies to Work For list.
£0.8m was donated to long-standing partner, The Royal British Legion, with the total donated since the partnership began now almost £19 million. The Society supported more than 200 charities with emergency support that tackled immediate needs and the longer-term consequences of the pandemic.
1. The Society's average month end savings rate compared with the Bank of England average rate for household interest-bearing deposits on the Society's mix of products.
2. Net Promoter Score (NPS) is a measure of customer advocacy that ranges between -100 and +100 which represents how likely a customer is to recommend our products and services.
3. Administrative expenses, depreciation and amortisation/Average total assets.
You can find out more information about these results by downloading our 2020 year end financial results news release.
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