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Coventry BS reports strong half year performance

Coventry BS reports strong half year performance

Category: Economy

Updated: 21/08/2009
First Published: 21/08/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Coventry Building Society has posted strong profits for the first half of 2009, seemingly avoiding many of the problems encountered by its rivals.

Overall profits before impairments and exceptional items totalled £40.1 million in the first six months of the year, compared to £38.3 million during the same period in 2008.

Profit before tax was £36.2 million (2008 first half year - £35.5 million), while profit after tax was £31.1 million (2008 first half year - £25.1 million).

The results come on the day that Chelsea Building Society posted pre-tax losses of £26 million, predominantly caused by fraud by buy-to-let mortgage customers.

Key to the impressive performance from the UK's third largest building society was the quality of its credit, with the number of its accounts more than six months in arrears just one third of the Council of Mortgage Lender's average.

In the first half of the year Coventry Building Society's net mortgage lending totalled £338 million, which accounts for 12.7 per cent of all undertaken across the sector.

Coventry became one if the ten largest lenders in the UK for the first time ever last year.

Figures showed that the average loan-to-value of new advances was 53 per cent, reflecting a cautious approach by the UK's banks and building societies.

"I believe these are excellent results, in particular as we have been operating in some of the most difficult market conditions imaginable," said chief executive, David Stewart.

While 2009 and 2010 will provide challenges, the society remains well placed to meet them, he added.

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