Coventry Building Society saw its overall lending rise to more than £1.2 billion and its asset grow to over £6 billion last year, according to its annual results.

The UK's 5th largest building society has labelled the year ending at 31 December 2000 “exceptional”.

Pre-tax profits rise from £34.8 million to £40.7 million. Particular highlights of the results include:

• Gross lending of £1.2 billion - up 14.3 per cent - a record for the Society and significantly ahead of 'natural' market share
• Net mortgage lending of £604 million - up 19.2 per cent
• Net savings receipts of £405 million -  well ahead of 'natural' market share
• Total assets of £6.4 billion - annual growth of 13.2 per cent
• Net interest margin narrowed from 1.24 per cent to 1.17 per cent
• Over £30 million returned to members in the year - through lower mortgage rates and higher savings rates
• Management expenses ratio down from 0.73 per cent to 0.70 per cent - efficiency improved and one of the lowest ratios of any building society in the UK
• Pre-tax profit up from £34.8 million to £40.7 million
• Mortgage arrears at the lowest level for over 10 years

Commenting on the society's performance, chief executive Martin Ritchley said:

"Once again our results quite clearly demonstrate the benefits which our building society status bring to our savers and borrowers.

“Over the last five years we have returned over £120 million to our members, in the form of better savings rates and lower mortgage rates.

"In 2000, we have deliberately narrowed our interest margin still further, from 1.24 per cent to 1.17 per cent of average assets, so that we can offer even more competitive interest rates to our members.

“This has enabled us to grow our business substantially, with assets having increased by an impressive 13.2 per cent to £6.4 billion.

"Despite the deliberate narrowing of interest margin, the society's profit was up by 16.8 per cent to £40.7 million, enabling us to maintain strong capital ratios.

"A significant element of our record gross mortgage lending of £1.2 billion, has been through remortgage business, with more and more people seeking the advantages which membership of Coventry Building Society bring.

“Whilst all of our distribution channels have played their part in this success, the launch of our new internet site, www.remortgages.co.uk, has been particularly influential and we look forward to developing new technology even further as we continue to grow.

"Our strategy is working. The society's efficiency has improved for the fifth successive year, our assets have grown substantially and we continue to deliver more benefits to members. We look forward to building upon this success in 2001 and beyond."
 

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