Coventry reports 385m increase in mortgages and loans

The Coventry increased its mortgages and other loans by 385m its interim results for the first half of 2006 reveal.

Other highlights include a growth of 4.3% in assets for the six months, which now exceeds 11.5m.

Growth in savings balances were up 4.9% to 7.8bn, and profit before tax was up 13% over the same period in 2005 to 29m.

David Stewart, chief executive of the Coventry, says: As a building society, our aim is to provide good value mortgage and savings products for the benefit of our members.

I am therefore very pleased to report further growth in both mortgage and savings balances, both of which have risen to record levels.

We have been particularly keen to help first-time buyers in what is a difficult market for them and it is pleasing that these efforts have been recognised in the form of several independent awards.

With no dividends to pay to outside shareholders, we have again been able to narrow our interest margin, now 0.85% of average assets, for the benefit of our saving and borrowing members.

We also continue to improve our efficiency and I am pleased to report a further reduction in our management expenses to average assets ratio to 0.55%.

These results highlight a very successful performance in a highly competitively financial services market.

“They clearly demonstrate the advantages of our building society status and provide further evidence of our ability to compete successfully and to deliver real benefits to both saving and borrowing members.