The Coventry, the UK's 7th largest building society, welcomes the result of today's vote at the Nationwide Building Society Annual General Meeting.

Martin Ritchley, Chief Executive of Coventry Building Society commented:

"This is good news not only for the Nationwide and its customers, but also for all other building societies.  This is the second occasion that the Nationwide has had to defend its status, even though it is quite clear that they, like other committed building societies, have consistently demonstrated the ongoing benefits of builing society membership.

"The members of Nationwide Building Society have decided against opportunism in favour of continued benefits year after year after year.   Although the result was, on the face of it, quite close, it should be noted that the minority of members voting for the conversion fell well short of the substantial requirements contained in the Building Societies Act to implement such a decision.

"Building Societies now need to look forward and be allowed to get on with their business, focusing upon providing more and more customers with the benefits which building society membership brings.

"Yesterday in Parliament, MPs of all political persuasions urged the Government to take action to change the legislative framework surrounding building societies, to prevent the events of today becoming an annual distraction, not just for Nationwide, but for all societies.  I welcome the support which MPs are giving to building societies and share their view that it is time for Government to act to stop the interests of genuine members being compromised by those who seek to speculate.

"The Coventry continues to remain totally committed to its building society status.  Unlike banks, building societies do not have to satisfy outside shareholders.  They can therefore deliver real benefits to both savers and borrowers in the form of higher savings' rates and lower mortgage rates.  As far as the Coventry is concerned, this is reflected by the fact that our net interest margin remains the narrowest in the financial services sector and that a recent MoneyFacts survey identified that long term Coventry borrowers had received the best deal of any lender in the year to 30 June 1998.  As we say, TLC not PLC."

NOTES FOR EDITORS:

AVERAGE NET INTEREST RATE* MARGINS - 1997

SOURCE: Taken from each organisation's Report & Accounts
* The net interest margin reflects primarily the difference between
interest charged to borrowers and interest paid to savers
** Nationwide's year end - April 1998

TOP 10 MORTGAGE LENDERS* - INTEREST REPAYMENTS

SOURCE: MoneyFacts
* Coventry compared with the top 10 mortgage lenders by asset size, ranked according to interest charged.  Only 10 competitors are shown, but the Coventry came in at No.1 out of 30 leading lenders.
** Loyalty rate for long-term borrowers

MORE INFORMATION: Press Office 01203 635653

©1995-2000 Coventry Internet Developments Ltd