The mutual said the growth was offset by redemptions and other repayments.
Coventry Building Society said there was more lending in higher-loan-to-value (LTV) segments, and the group took a measured approach due to new business margins and the acquisition of The Co-operative Bank.
Lending on owner-occupier homes made up 75% of all new lending, similar to the 76% share in 2024, and the average LTV was relatively flat at 67%, compared to 68% a year earlier.
Coventry Building Society increased lending to first-time buyers, with the number of loans to this group rising from 7,100 to 9,600 year-on-year.
Its mortgage book has an average LTV of 55% compared to 54% the year before, which it said remained “robust and high quality”.
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This was further indicated by the low level of arrears, with just 0.38% of mortgages in arrears of three months or more, compared to 0.33% in 2024. This was also lower than the industry average of 0.78%.
Coventry Building Society said this represented 1,637 cases, up from 1,045 previously, and demonstrated the “resilience of the portfolio”. Most of these accounts were on LTVs lower than 75%.
Possessions and forbearance remained low, with 67 mortgages in possession, up from 36 at the end of 2024, including 21 cases in possession by The Co-op Bank.
Coventry Building Society said it also launched a successful limited company buy-to-let (BTL) proposition in April, extending its reach to the residential rental sector with more than £1bn applications received.
Overall, including the acquisition of The Co-op Bank, the group’s market share increased from 3.1% to 4.2%. It said it focused lending on high-quality, low-LTV owner-occupied and BTL lending within the prime residential market. The acquisition increased its scale and breadth of its “already regionally diverse mortgage portfolio”.
Its lending book grew by £21.1bn to £72.9bn, up from £51.8bn the year before. Most of this growth was due to the acquisition of The Co-op Bank, contributing £20.4bn, while it saw modest growth.
Its statutory profit before tax rose from £323m to £801m including a gain of £584m on the acquisition of The Co-op Bank. Its underlying profit before tax rose more moderately from £349m to £374m.
Steve Hughes, chief executive of Coventry Building Society, said: “A defining and transformational year for the group, having brought The Co-operative Bank back into mutual ownership, delivered on our integration and financial performance commitments and created our new ambitious organisational strategy.
“We remain absolutely focused on delivering the right outcomes for our members and customers and have started laying the groundwork to create an organisation that is meaningfully different in UK financial services.”
