Coventry Building Society has today announced pre-tax profits of £18.5 million for the first six months of the year.

And the firm claims it is ahead of its natural market position, receiving £153 million in savings from its investors.

More than 100,000 savings accounts have been opened since the start of the year, widening the membership base.

Gross mortgage advances totalled £487 million and net lending totalled £216 million, again well ahead of the Society's "natural" market share.

And total assets increased to £5.97 billion, representing half-year growth of 5.12 per cent and 11.73 per cent for the full year to 30 June.

Commenting upon these results, chief executive Martin Ritchley said the results reflected the society's success in attracting and retaining both mortgage and savings business.

He said the society is already one of the most cost-efficient in the country, but the management expenses to assets ratio has been reduced still further to 0.72 per cent of average assets.

Mr Ritchley said:

"As a committed building society, the Coventry has consistently operated on one of the narrowest interest margins of any financial institution in the United Kingdom, enabling highly competitive interest rates to be offered to savers and borrowers.

“In the first half of 2000, the interest margin has been narrowed still further to 1.13 per cent of average assets.

“Nevertheless, the pre tax profit amounted to almost £18.5 million - nearly £1 million up on the comparable period of 1999, enabling the society to maintain its strong capital ratios.

"Our results continue to demonstrate the important advantages we enjoy as a building society.  With no dividends to pay to outside shareholders, we have been able to reduce our interest margin still further for the benefit of our savers and borrowers.

“This has enabled us to achieve impressive growth and continue to capture market share from our competitors.

"Our competitiveness has achieved growing independent recognition. For the fifth successive occasion, Moneyfacts has recently rated the Coventry as top of the league table for charging established borrowers the lowest amount of interest of any major lender measured over the past three years.

"Our results demonstrate that we have a proven formula for success. We aim to grow our business still further, so that we can deliver the benefits of building society membership to more and more people in the future."
   

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