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Coventry boasts outstanding performance

Coventry Building Society, the UKs fifth largest building society, has today announced results which reflect an outstanding performance for the first half of 2005.

Coventry’s assets exceed 10.5 bn – growth of 11.78% in the six months, 16.93% in the full year.

Record gross lending was 1,631 mn (2004 1,132 mn).

Record net lending was 944 mn (2004 205 million).

Coventry’s mortgage balances grew by 12.48% in the half year (2004 2.78%).

There was an increase in savings balances of 291 mn (2004 112 mn).

Profit before tax was up to 25.6 mn (2004 23.4 mn).

There was a net interest rate margin of 0.92% (2004 0.96%).

Coventry’s management expenses ratio reduced to 0.59% (2004 0.62%).

Mortgage arrears ammounted to 0.20% of balances less than half the industry average.

The results were prepared, for the first time, under International Financial Reporting Standards and comparative figures for 2004 have been re-stated accordingly.

Martin Ritchley, chief executive says: Despite the slowdown in the housing market, Coventry Building Society has enjoyed an outstanding six months in which we have substantially exceeded our natural market share for mortgages.

“Our gross lending was a record 1,631 mn, 44% up on the first half of 2004. Lower levels of mortgage redemptions enabled net lending to reach 944 mn in the half year, also a record and 360% up on 2004.”

This exceptional performance enabled our assets to pass the 10.5 bn mark, representing growth of 11.78% in the six months and 16.93% in the full year.”

The increase in savings balances more than doubled to 291 mn, reflecting the success of our innovative Family 1st and Sixty-Plus range of accounts, resulting in record balances of 6.85 bn.

Our strong results reflect the benefits which, as a building society, we are able to deliver to members. With no dividends to pay to outside shareholders, we have been able to narrow our interest margin yet again to 0.92% of average assets. Even so, our profit was up by 2.2 mn to 25.6 mn an increase of 9.4%. In part, this reflected our success in continuing to improve efficiency. Our management expenses to average assets ratio reduced from 0.62% to 0.59%, maintaining our position as the most cost efficient UK building society.

The Coventry has consistently maintained prudent lending terms and policies, reflected in the fact that our mortgage arrears, at just 0.20% of balances, continue to be less than half the industry average.

In a highly competitively financial services market, our results are truly outstanding. They reflect the advantages of our building society status and provide further evidence of our ability to compete successfully and to deliver ongoing benefits to our members.

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