Coventry Building Society banks on IT as it takes over The Co-op
Coventry Building Society and its subsidiary The Co-operative Bank have placed a strong emphasis on IT infrastructure in its first financial results since the acquisition.
The society says it has made progress in simplifying its systems, moving £19bn of mortgage balances and £5bn of savings balances onto a single platform after exiting legacy systems and data centres.
It is expected to improve scalability, speed to market and cost-efficiency.
The bank has also achieved an investment credit rating of A3 from Moody’s and BBB+ from Fitch, reflecting its stable profitability and strong capital position.
Underlying profit before tax came in at £116.2m, down from £120.9m the previous year.
The decrease, in line with expectations, was attributed to lower net interest income due to tighter mortgage margins and higher savings rates, though partially offset by the bank’s structural hedge.
Steve Hughes, chief executive of the Coventry Building Society said: “The Society has delivered another balanced and disciplined set of results, growing mortgages and savings ahead of the market, delivering the outstanding service and value our members expect, and continuing the strong financial performance that has underpinned the transformational acquisition of Manchester-based The Co-operative Bank on 1 January 2025.
“It is very encouraging to see that the Bank’s improved financial strength has been recognised externally, resulting in several credit rating upgrades and driving a return to investment grade once again. The Bank is operationally and financially resilient, with a strong capital and liquidity profile and partnerships in place that align with its cooperative values and ethics. It has shown continued progress in a period of considerable business change, and I would like to thank Nick Slape and his team for their leadership of the business during this period of turnaround. “
