Coventry Building Society saw its underlying profit jump 51 per cent to £217.8m last year, according to its annual results.
The results, published today (17 February), revealed that pre-tax profit was £201.8m, compared to 2013’s pre-tax profit of £132.1m.
With regard to mortgages, lending increased by 25 per cent to £7.4bn and mortgage assets increased by £2.8bn - 12 per cent - to £27bn. The net mortgage lending is equivalent to 13 per cent of all net mortgage lending in the UK.
Overall, savings balances were up by 10 per cent to a “record” £23.4bn.
It has also set aside £15.3m provision for liabilities and charges in respect of the Financial Services Compensation Scheme levy. In 2013, £15.4m was spent on the FSCS levy and £900,000 for payment protection insurance redress.
Coventry confirmed that no further provision for PPI has been made during the year.
Mark Parsons, chief executive at Coventry Building Society, said: “In 2014, the overall growth in savings balances was £2.1bn, a 10 per cent increase on 2013, compared with a growth in the UK market of 5 per cent, resulting in a record of £23.4bn total savings balances.
“This growth was achieved in a market that continues to be influenced by a low Bank of England base rate and the Funding for Lending Scheme.
“The fact that we continued to attract additional deposits during this period demonstrates our intent to offer long-term value to savers despite the availability of cheaper alternative funding.
“This is underpinned by more than 99 per cent of variable rate cash Isa customers receiving an interest rate of 2.0 per cent or more, and our non-Isa savings products featuring in national press best buy tables every week for over two years.”
ruth.gillbe@ft.com
