Coventry Building Society has reported strong financial results for 2024, following its recent acquisition of The Co-operative Bank.
The society’s financial performance remained robust, with statutory profit before tax reaching £323m, compared to £474m in 2023.
This was in line with expectations following an exceptional operating environment in 2023.
Net interest margin (NIM) declined to 1.07% from 1.26%, reflecting customer transitions to lower-margin products and base rate reductions.
Excluding acquisition and integration-related costs of £25.8m, underlying profit before tax stood at £349m.
Effective cost management was evident, with management expenses rising by only £12m or 4%, excluding deal-related costs and the new Bank of England levy.
Arrears remained low, with only 0.33% of mortgages more than three months in arrears, demonstrating the resilience of the society’s credit book.
The leverage ratio increased to 5.7%, up from 5.4%, and the Common Equity Tier 1 (CET 1) ratio remained well above statutory requirements at 28.0%.
Customer service continued to improve, as reflected in a higher Net Promoter Score of +79, up from +76 in 2023.
Investments of £91m in technology infrastructure and digital capabilities led to the launch of a new app, enhancements to the mortgage origination platform, and improvements in operational and financial resilience.
These initiatives contributed to significant service enhancements, including a reduction in call answering times from 105 seconds to 58 seconds.
The acquisition of The Co-operative Bank resulted in a gain of £603m, stemming from the fair value of the net assets acquired exceeding the purchase price.
Employee engagement also saw progress, with the society improving its Great Place to Work survey Trust Index score from 81% to 83%, placing it among the best workplaces in the “super large company” category and earning recognition as one of the Fortune 100 Best Companies to work for in Europe.
Additionally, community investment increased to £4.5m in 2024 from £3.1m the previous year.
The society also deepened its commitment to social responsibility, including a £1m donation to Centrepoint to support youth independent living in Manchester.
Steve Hughes, chief executive of Coventry Building Society, said: “The society has delivered another balanced and disciplined set of results, growing mortgages and savings ahead of the market, delivering the outstanding service and value our members expect, and continuing the strong financial performance that has underpinned the transformational acquisition of The Co-operative Bank on 1st January 2025.
“We remain absolutely focused on delivering the right outcomes for our members and customers as we continue our journey of building a brilliant, purpose-led organisation that will stand out in UK financial services.”
