Coventry Building Society Group has posted strong financial results for the first half of the year, buoyed by its recent acquisition of The Co-operative Bank.
The group posted a statutory profit before tax of £722m, a substantial increase from £159m in the same period last year, driven by a £584m gain related to the acquisition.
Underlying profit before tax rose to £200m, up from £159m in H1 2024, while total underlying income increased to £554m from £316m.
The group maintained a net interest margin of 1.24%, compared to 1.05% in the prior period.
Despite the growth, underlying costs increased to £345m, primarily due to £186m in costs associated with The Co-operative Bank.
Costs for the Coventry Building Society subgroup remained flat at £158m, excluding deal-related expenses.
The group’s leverage ratio stood at 4.5%, down from 5.7% at the end of 2024, while the CET1 ratio was 19.1%, remaining well above regulatory requirements.
The integration of The Co-operative Bank has contributed significantly to Coventry’s market share, with mortgages rising to 4.3%, savings to 3.3%, and the addition of a 1.7% share in personal current accounts.
Lending balances remained stable when excluding the effects of the acquisition, reflecting a cautious approach in a low-margin, competitive market.
In April, the group launched a limited company buy-to-let mortgage offering, expanding into the residential rental sector.
In personal banking, over 40,000 current accounts were opened in the first half, with net switching gains of nearly 10,000.
Retail savings balances, excluding acquisition effects, grew by £2.0bn to £62.8bn, with members receiving £201m above market average returns.
Customer service remained a key focus, with the society achieving an Net Promoter Score (NPS) score of +76 and maintaining an average call wait time of just 83 seconds.
The Co-operative Bank also made strides, improving call response times to an average of four minutes – three times faster than in June 2024.
Employee engagement remained strong during the ongoing integration process, with 79% of colleagues saying it is a great place to work, according to a recent survey.
Coventry Building Society was also recognised as one of the UK’s Best Workplaces™ for Development.
Community investment continued with over £1m donated in the first half of the year.
This follows a £1m contribution to tackle homelessness in Manchester in late 2024, with an additional £1m pledged to support youth homelessness in Coventry.
Steve Hughes, chief executive of Coventry Building Society, said: “This is a transformational year with the addition of The Co-operative Bank into the Coventry Building Society Group and it is pleasing to see such a robust performance in the first six months.
“We remain focused on delivering the right outcomes for our members and customers as we continue our journey of building a purpose-led organisation that will stand out in UK financial services.”
