Coventry Building Society has reported strong growth in both mortgage assets and savings deposits in its year-end results, published today (March 1).
According to the results, mortgage assets grew 9 per cent for the year ended December 31 to £39.3bn, while savings deposit balances increased by 7 per cent to £33.3bn.
Meanwhile, the building society's profit before tax fell by 17 per cent to £202m over the year, driven by a £41m increase in costs relating to its strategic investment programmes.
Net interest income rose to £426m,up from £411m in 2017, reflecting growth in both mortgages and savings balances in spite of an increasingly price competitive mortgage market.
Coventry Building Society had an average savings rate of 1.5 per cent in 2018, compared to a market average of 0.78 per cent, and returned £227m to members.
Mark Parsons, chief executive of Coventry Building Society, said: "Despite the pressure on mortgage pricing, we have maintained the low risk approach to lending that is right for our members and that has been our hallmark for many years.
"The society's arrears fell again in 2018, and are only one seventh of the industry average, meaning that members benefit from low credit losses."
The weighted average loan to value of the firm's mortgage book is 55 per cent, in line with the 54 per cent reported in 2017.
Mr Parsons added: "Central to our mortgage growth is the strength of our intermediary partnerships.
"We believe borrowers should have the opportunity to receive independent advice when they take out a mortgage and we are an advocate of mortgage brokers who provide this. In turn, we work tirelessly to improve our service to brokers and their clients."
In 2018, Coventry Building Society received the Financial Adviser Five Star Service Award for its mortgage service for the third year running.
Jenny Turton is a freelance journalist
