|[22 FEB 00] COVENTRY
BUILDING SOCIETY PRESS RELEASE
Another Record Breaking Year For The Coventry Building Society
- Record net receipts from savers of £609 million up
41% and double "natural" share
- Gross mortgage lending of £1.1 billion significantly
ahead of "natural" share
- Net mortgage lending of £507 million, representing growth
- Deliberate reduction in profit to £34.8 million, so as to
bring further benefits to members
- Increase in total assets of £450 million to £5.7 billion
- Management expenses ratio down from 0.77% to 0.73% - the
- Gross capital maintained at over 6.0%
- Customer base expanded by 85,000 members
Coventry Building Society, the UKs sixth largest
building society, reports another successful year of business results for 1999.
Commenting upon the Societys performance, Martin
Ritchley, Chief Executive, said:
"With no dividends to pay to outside shareholders,
these results reflect the clear advantages that building society status brings us in an
increasingly competitive market place.
"Unlike the banks, profit maximisation is not our
objective. Already, we were operating on one of the narrowest interest margins of any
financial institution, but in 1999 we have been able to reduce this still further, from
1.24% to 1.14% of average assets, bringing further benefits to our savers and borrowers,
whilst maintaining the strong financial ratios for which we are renowned.
"The competitive rates which we offer have enabled us
to grow our savings and mortgage business substantially. Record net receipts from savers
of £609 million represented a 41% improvement on last years figure, which in itself
was a record. In addition, for the second year running, mortgage lending exceeded £1
billion, significantly ahead of the Societys "natural" market share.
Consequently, our customer base has expanded by an impressive 85,000 members.
"Despite the narrowing of interest margin and the
consequent reduction in profitability, the Societys gross capital ratio remained
virtually unchanged at 6.03%. In addition, the Society improved its efficiency for the
fourth year running, with the ratio of management expenses to average assets reducing to
0.73% - the lowest ever and one of the best in the sector.
"Our aim is to establish long term relationships with
an increasing number of saving and borrowing members. In December 1999, for the fourth
time in succession, Money£acts identified Coventry Building Societys Privilege Rate
mortgage as charging the least amount of interest to established borrowers of any top 30
UK mortgage lender. In April last year, we extended this concept to savers as well, with
the launch of our Privilege ISA, which has offered a market leading rate ever since and
has delivered additional benefits to even more long standing members.
"We are delighted with our results for 1999 which
continue to demonstrate the tangible benefits which we are delivering to our members year
after year. At a time when converted societies are struggling to maintain market share
whilst satisfying outside shareholders, Coventry Building Society continues to go from
strength to strength."