Huge surge in profit at Coventry Building Society

COVENTRY Building Society has recorded strong results with underlying profit increasing by 51% to £217.8m for the year ending December 31.

Profit before tax was £201.8m (2013: £132.1m).

The mutual has also benefited from an upturn in the housing market with new mortgage lending increasing by 25% to £7.4bn. Its net mortgage lending was equivalent to 13% of all net mortgage lending in the UK.

Savings balances were up by £2.1bn (10%) to £23.4bn.

Mark Parsons, Coventry Building Society chief executive, said: “Coventry Building Society is a strong organisation, with a clear and consistent record of success. In 2014, we once again proved that a business model based on doing the right things for members can flourish.

“In this regard the continuing strong financial performance of the Society with an increase in profit before tax of 53% to £201.8m has been achieved whilst still providing long-term value to our saving and borrowing members.

“The primary source of capital to support future growth will continue to be retained profits. The Society’s ability to provide attractive savings and mortgage products whilst building capital is supported by its sector-leading cost-efficiency and low level of mortgage arrears and impairment charges.”

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