Building society reports strong performance

Coventry Building Society has seen its profit before tax increase to £371m in 2022, from £233m the previous year.

The firm says the rising interest rate environment created an improved income performance, even after it offered better rates to savers and aimed to protect variable rate mortgage customers from the full increase in the Bank of England Rate.

It’s reported a low arrears balance of 0.17% of its mortgage being in more than three months of arrears. However it says whilst the quality of the mortgage book is strong, it is “mindful of the potential impact on unemployment and house prices from a weaker economy”. CBS is monitoring and supporting mortgage customers who may experience payment difficulties.

An improved position in the Great Place to Work survey was also recorded as CBS moved from 77th place to 73rd.

Steve Hughes, Chief Executive Coventry Building Society, said: “This was a really strong performance in unprecedented economic conditions. We have balanced the needs of savers and borrowers whilst ensuring the Society remained safe and secure.

“We protected all members by lending responsibly and managing growth carefully in volatile markets.

“Our financial performance enabled us to increase capital to support future investment, resilience and growth.  We made great progress with our technology transformation, also completing our branch redesign programme.

“It was a strong and balanced performance in the interests of members and the long-term resilience and relevance of the Society.”