Press
Coventry year-on-year profits up 131%
by Joy Dunbar
FinancialAdviser 04th March 2010
Profits at Coventry Building Society have increased from £18.8m in 2008 to £43.5m last year, according to its annual results to 31 December 2009. The rise represents a 131 per cent year-on-year increase.
For the same period, record operating profits before impairments and exceptional items was £75m last year and in 2008 it was £71.7m according to the building society's results.
The society's strength in the mortgage market is its ability to execute this simple business model without recourse to new or increased levels of risk according to a statement released by the Coventry with its results.
It stated: "This has meant that we have avoided the pitfalls that have limited lending at some of our competitors."
David Stewart, chief executive of Coventry Building Society, said that the strength of its relationship with intermediaries has played an important part in its success and it has kept the pledges it made before the credit crunch, including no dual pricing and 48 hours notice before product withdrawal.
He said: "Coventry has performed extremely strongly in what has undoubtedly been a very difficult environment. Our performance is based on the consistent application of a simple business strategy. "We have been successful in attracting and retaining savings balances and have maintained our track record of growth with responsible lending. These results show that the traditional building society model is alive and flourishing."
James Carter, principal of London-based adviser Independent James, said: "Coventry has been one of the most supportive brands for intermediaries and it has been backing it up with excellent products. It has intermediary pledges and I think that its approach should be applauded."