Coventry Building Society posts impressive set of 2017 numbers

Coventry Building Society announced its results for the year ended 31 December on Friday, reporting “strong growth” in mortgages, with mortgage assets increasing £3bn to £35.9bn, representing growth of 9%.

The society said that growth was almost three times faster than the market.

It also reported record savings balances, as savings deposit balances grew £3.0bn to £31.0bn, representing growth of 11% - almost four times the rate of the market.

Strong capital was also highlighted by the board, as profit before tax increased 2% to £243m, increasing its Common Equity Tier 1 ratio to 35% - the highest reported by any top 20 lender, and a leverage ratio of over 4%.

The board also concentrated on low costs through the period, with the society's cost-to-mean asset ratio sitting at 0.42%.

It said that was the lowest reported by any building society, and a “key advantage” which allowed it to give long-term value to savings and mortgage members.

The society also described itself as a “low risk” lender during the period, with mortgage arrears falling to a sixth of the industry average.

It confirmed that its average savings rate in 2017 was 1.49%, compared with a market average of 0.63%, keeping its savings numbers at impressive levels.

“Coventry Building Society delivered a strong and balanced performance in 2017, maintaining our record of savings and mortgage growth, excellent member service and a robust financial position,” said chief executive Mark Parsons.

“This was driven by our clear and consistent focus on putting members first.”

Parsons said looking forward, the society expected price competition in the mortgage market to remain and margins to tighten further.

However, he added that its low-cost operating model meant that it would be able to continue to offer attractive long- term value to savings and mortgage members.