Coventry Building Society reports profit plunge
Profits have dropped at the Coventry Building Society, as it battled with “an exceptional operating environment in 2023″.
In the first half of 2023, the Society reported a profit before tax of £269m, this has now fallen to £159m in 2024, which it says is in line with expectations.
Mortgage balances grew by £1.1bn (2.2%) to £51.4bn and savings balances increased by £1.2bn (2.6%) to £48.8bn.
In May, the Society signed a £780m deal to acquire the Co-operative Bank, boosting the group’s mortgage and savings presence and increasing capacity in the personal current account and business banking markets.
The new high street banking powerhouse will have a balance sheet of £89bn and will be led by David Thorburn and Steve Hughes, Coventry’s current chair and chief executive.
The deal is expected to complete in the first quarter of 2025.
Management expenses including depreciation and amortisation for the period were £171m, a £24m rise on last year after £14m was spent relating to the acquisition of the Co-op, £7m went to the new Bank of England levy, alongside the pressure of inflation on both employee costs and third party costs.
£43m has been invested to modernise services and boost efficiency. The Society has also improved its ranking in the Great Place to Work table of super large organisations from 13 to 11, as well as being recognised as one of the best places to work for women and for wellbeing.
Steve Hughes, Chief Executive of Coventry Building Society said: “I am delighted to report that the Society has continued its sustained record of delivery in the first six months of the year. We have grown mortgages and savings in a market where economic uncertainty persists and continued to offer great value products and exceptional service to our members.
“The Society has recorded a strong financial performance in the first half of 2024 and further enhanced our capital position. We are making good progress to complete the acquisition of The Co-operative Bank in the first quarter of 2025.”
