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.