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

"A defining and transformational year for the Group having brought The Co-operative Bank back into mutual ownership, delivered on our integration and financial performance commitments and created our new ambitious organisational strategy.
 

We remain absolutely focused on delivering the right outcomes for our members and customers and have started laying the groundwork to create an organisation that is meaningfully different in UK financial services."

Robust Group financial performance

• Statutory profit before tax increased to £801 million (2024: £323 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.
• Underlying¹ profit before tax for the year increased to £374 million (2024: £349 million) reflecting the inclusion of Bank profits.
• Total underlying¹ income of £1,124 million (2024: £664 million) and net interest margin of 1.22% (2024: 1.07%), with the increase in the year reflecting the inclusion of the Bank income, partly offset by a £67m reduction in Society sub-group net interest income as a result of increasingly competitive trading conditions.
• Group underlying¹ costs of £735 million (2024: £333 million), including £404m of Bank costs. The Society sub-group costs remained broadly flat at £331 million. In addition, a further £67 million of one-off costs were incurred in the year relating to acquisition and integration activities.
• Leverage ratio increased from our 1 January 2025 pro-forma level of 4.4% on acquisition of the Bank to 4.6% (2024: 5.7%) and CET1 ratio from 19.1% to 19.7% (2024: 28.0%), well above regulatory levels. 
• In the year, it was encouraging to see the Bank's performance in line with expectations, providing confidence in the financial benefits of the acquisition. Strong progress is being made in integrating the two organisations.

Delivering for our members and our personal and business customers

• The inclusion of the Bank has increased our market share² of mortgages to 4.2% (2024: 3.1%) and savings to 3.5% (2024: 2.7%) and creates an opportunity to build on the 1.6% market share acquired in the personal current accounts segment.
• Excluding the impact of the acquisition, the Group delivered disciplined growth in residential mortgages given current low margins, with business, commercial and unsecured lending balances remaining stable. In the current competitive market, our focus has been on capital accretion.
• The Group launched a successful limited company buy to let proposition in April, broadening our reach to the residential rental sector with over £1 billion applications received in the year. 
• Excluding the impact of the acquisition, Group deposit balances increased by over £2 billion to £72 billion. The Society has continued to offer competitive products with a £398 million premium³ being paid to members, in line with prior year despite the lower bank rate environment. Over £10 billion of funding from government schemes has been repaid in total.
• Over 76,000 customers opened a personal current account in the year with positive net switching of almost 4,000 and 16,000 new business current accounts were opened.
• The Society continues its record of outstanding customer service with an NPS score⁴ of +75 and an average call wait time⁵ of just 79 seconds. The year has seen a significant focus on service in the Bank and the average speed to answer calls is now three times faster than 2024 and at the lowest level in the last six years. 

Supporting our colleagues and the communities we serve

• Colleague feedback and engagement remain a priority, and we are proud of our continued external recognition as a Great Place to Work in the super large organisation category with an engagement / trust index score of 76%⁶. This is the first combined score for the larger Group and reflects the coming together of two organisations and a period of significant change for colleagues.
• 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.
• The Group has invested £6 million over the year in supporting our communities⁸, including maintaining funding of £2 million to help tackle youth homelessness.