It attributed the tumbling profits to an “exceptional operating environment” over 2023 where base rates stabilised, retail savings competition increased and mortgage customers repriced to lower-margin products.
Steve Hughes, chief executive of Coventry Building Society, said: “I am delighted to report that the society has continued its sustained record of delivery in the first six months of the year.”
He added: “We have grown mortgages and savings in a market where economic uncertainty persists and continued to offer great value products and exceptional service to our members.
“The society has recorded a strong financial performance in the first half of 2024 and further enhanced our capital position. We are making good progress to complete the acquisition of The Co-operative Bank in the first quarter of 2025.”
The mortgage lender, which completed £8.3bn in gross lending in 2023, taking a 3.7% market share, said mortgage balances increased by £1.1bn or 2% in H1 to £51.4bn.
It said this was due to a robust mortgage pipeline, improved retention and a conscious and disciplined approach to lending that reflects current market conditions and the needs of its members.
The Coventry distributes around 95% of its home loans through intermediaries and continues to honour its pledge to give two days notice on product withdrawals.
Savings balances on the rise
Savings balances grew by £1.2bn (2.6%) to £48.8bn, driven by higher savings rates than the market average and “exceptional service”.
It increased the premium paid to members from £163m to £195m, which equates to an additional 0.87% in interest against 0.79% in H1 last year.
Its net promoter score (NPS) improved to +79, up from +76 the year before, adding that its “continued investment in our people and technology helping to reduce average call answering time from 105 to 62 seconds.”
The mutual was also recognised by consumer value publisher Fairer Finance for outstanding mortgage and savings customer experience receiving gold ribbons in both categories.
The society’s arrears figures are low at 0.31% of mortgages more than three months in arrears, although up from 0.26% in 2023.
In May, Coventry signed a share purchase agreement to buy The Co-operative Bank, the 13th largest UK mortgage lender by outstanding mortgage balance. This is expected to complete in Q1 2025.
It said: “This will increase both the group’s mortgage and savings presence and extend the society’s propositions into the personal current account and business banking markets.”
