Coventry Building Society has reported notable growth in both savings and mortgage sectors, attributing the increases to its focus on delivering value and service to its members.
Steve Hughes, chief executive of Coventry Building Society, reflected on the achievements: “In this context we delivered a strong financial performance and growth ahead of market. We concentrated on great value products, outstanding service, and putting the right foundations in place to support our future success.”
The Society’s mortgage balances increased by £2.3bn to £50.3bn, a reflection of its dedication to providing excellent products and service in a challenging market. Savings balances saw an even more significant rise, growing by £5.3bn to £47.6bn, as the Society aimed to offer competitive products with a focus on rewarding loyalty.
The financial performance of the Society was robust, with profit before tax climbing to £474m from £371m in the preceding year. This growth has been supported by an improved net interest margin of 1.26%, even as the Society made efforts to protect its members from the full brunt of interest rate rises and contributed to community support initiatives.
Hughes added: “These are important proof points of our mutual model – value, service, resilience and making a difference in our communities – all delivered by our brilliant and highly engaged colleagues.”
Furthermore, the Society has maintained a strong capital position, with a leverage ratio of 5.4% and a CET 1 ratio of 29.1%, ensuring resilience in an uncertain economic outlook. Arrears balances remained low, underlining the credit quality of the Society’s mortgage book.
Investments in customer service and digital capabilities have not waned, with the Society investing £92m to enhance its mortgage proposition and operational resilience.
The Society’s exploration of a potential transaction with The Co-operative Bank remains ongoing, with a due diligence process in place.
