- Record gross mortgage lending of £1.1 billion up 27% on 1997
- Net mortgage lending £679 million up 37% on 1997
- Net receipts from savers of £456 million the second best total ever
- Asset growth of 20% to £5.2 billion
Coventry Building Society today announced exceptional business results for the year
ended 31 December 1998, clearly reflecting the advantages which its building society
Gross mortgage lending totalled over £1.1 billion (the first time ever that the £1
billion milestone has been exceeded) representing a 27% increase on 1997. Not only was the
Society successful in attracting new borrowers, but it was also successful in retaining
existing customers as well, with net lending (gross lending less capital repayments)
improving by 37% to £679 million. This is estimated to be more than two and a half times
the Societys natural share.
Savings receipts totalled £456 million the second best performance ever
achieved by the Society, £67 million up on 1997.
This success in all aspects of our business enabled assets to increase by £872 million
to total over £5.2 billion at the year end, representing 20% growth, undoubtedly amongst
the strongest performances in the sector.
Despite the fact that at 1.24% of average assets the interest margin remains amongst
the narrowest in the sector, pre-tax improved by £7.2 million to £37.3 million, enabling
the Society to maintain strong capital ratios.
Cost containment combined with strong growth enabled the ratio of administrative
expenses to average assets to improve from 0.83% to 0.77%, reinforcing the Coventrys
position as one of the most efficient building societies in the United Kingdom.
Commenting upon the Societys impressive results, Chief Executive Martin Ritchley
"Unlike our banking competitors, we have no dividends to pay to outside
shareholders. Once again, we have used this significant advantage to offer market leading
products to our savers and borrowers and we are delighted that this has enabled us to grow
out business substantially.
"20% growth in a single year is impressive by any standards. Undoubtedly, a
significant proportion of new business has been attracted from the banks because of the
competitive advantage we enjoy but, as a building society, we have ensured that existing
customers also benefit in a tangible way from their membership of the Coventry.
"In December 1998, the Moneyfacts survey comparing the interest charged by the top
30 lenders, identified the Coventrys Privilege Rate as delivering the best deal to
established customers the second successive time the Coventry has topped the table
"In a highly competitive market, we are proud of the Societys results for
1998, which demonstrate that we are delivering the benefits of membership of the Coventry
to more and more people. Our impressive results reinforce our determination to remain a