View more on these topics

Coventry profits jump 20% in first half of 2010

Pre-tax profits have jumped 20% to £43.5m at Coventry Building Society in the first half of 2010.

Figures from January to June also show underlying profit before tax increased by a whopping 40% to £46.5m.

Gross mortgage lending was £1.6bn, nearly a quarter of all advances by mutuals, while net mortgage lending stands at £751m.

Retail savings balances grew 13% to £1.7bn, amounting to 8% of all net retail receipts at UK banks and building societies.

The building society confirmed its merger with Stroud & Swindon will complete on September 1 2010.

David Stewart, chief executive at Coventry, says: “I am pleased to report that the Society continues to perform well. Underlying profit before tax increased by 40% to £46.5 million, during a period in which the Society’s net mortgage lending was equivalent to 31% of the market as a whole.  These excellent results maintain our record  of strong performance since the onset of the credit crisis in 2007.”

A further £971,000 to be donated to the Poppy Appeal, bringing total donations since October 2008 to significantly above £3.5m.

In three years since 30 June 2007 total assets grew by £6.5bn, mortgage balances increased by £4.2bn and savings balances rose 76%.

On the basis of latest available data, mortgage balances 2.5% or more in arrears remain less than 40% of Building Societies Association average.

Retail savings, capital and reserves are equivalent to 106% of mortgages.

Recommended

Newsletter

News and expert analysis straight to your inbox

Sign up
Comments
  • Post a comment
  • Tim Lynch 18th August 2010 at 9:11 pm

    In response to Sarah Smith’s ‘moot’ point;

    Spot on that it is down to pricing for risk / reward – my point is that a lender such as Coventry, which does embrace the intermediary channel has a highly profitable mortgage book with low arrears figures….

    The noises that continually come out of HSBC go along the lines of “Our arrears figures our low due to us not allowing brokers to introduce business to us” etc…

    Sure your arrears figures are low – lending margin probably lower!

  • GMS 18th August 2010 at 4:05 pm

    Coventry offer good products and excellent service. Us brokers are bound to be biased towards those lenders who support us but when a lender is offering a genuinely great service and on a level playing field then they deserve to do well.
    Congratulations Coventry your support is appreciated

  • Sarah Smith 18th August 2010 at 2:08 pm

    I very much doubt the increased profits are all thanks to the intermediary. It is about pricing right and managing the business properly. The fact they may distribute via brokers is moot.

  • Sarah Smith 18th August 2010 at 2:08 pm

    I very much doubt the increased profits are all thanks to the intermediary. It is about pricing right and managing the business properly. The fact they may distribute via brokers is moot.

  • Tim Lynch 18th August 2010 at 11:33 am

    Congratulations to Coventry on what are excellent results.

    Given that they do not dual price I assume a large proportion of their lending growth must come from supporting the intermediary channel.

    HSBC should take note of this. The only way they are able to grow their book is by offering ridiculously low rates that look as though they are way below the cost of funds!