Final Results
February 19 2002 - 1:00AM
UK Regulatory
RNS Number:6371R
Coventry Building Society
19 February 2002
19 February 2002
Coventry Building Society
Record results from the Coventry
Coventry Building Society today announces record results for the year ending 31
December 2001, which reflect another exceptionally successful year.
Key features of the results are:
• Record gross lending of almost £1.5 billion
• Net mortgage lending of £616 million - ahead of 'natural' market share
• Record net savings receipts of £619 million - up 52.8% and well ahead of
'natural' market share
• Net interest margin reduced from 1.17% to 1.08% of average assets - a
further managed reduction for the benefit of members
• Other income up by 34.7% to £16.7 million
• Management expenses to average assets ratio reduced further, from 0.70% to
0.67% - one of the lowest of any society in the UK
• Total assets of £7.2 billion - an increase of £764 million, representing
growth of 11.9%
• Operating profit of £42.1 million - up 8.5% on last year
• Capital ratios increased
Commenting upon the results, Martin Ritchley, Chief Executive said:
'We are delighted to report another outstanding year for the Society. Once
again, our results clearly demonstrate the benefits to members of our building
society status, achieved principally because of the advantage we enjoy as a
building society in not having to pay dividends to outside shareholders.
'This year, our interest margin has been deliberately narrowed still further,
from 1.17% to 1.08% of average assets, which means that we have been able to
offer even more competitive products and interest rates to our savers and
borrowers.
'As a consequence, the Society achieved record gross mortgage lending of £1.5
billion. Net lending was also up at £616 million, ahead of our 'natural'
market share. Net savings receipts were buoyant, reaching a record £619
million, up by an impressive 52.8%, which is well ahead of our 'natural' market
share. It is particularly pleasing that we have been able to attract
substantial savings receipts, despite the low interest rate environment which
exists in the economy generally.
'Even with a narrower interest margin, the Society's operating profit was up
8.5% at £42.1 million (2000 - £38.8 million), whilst pre tax profit also at
£42.1 million, was up by £1.4 million on the comparable figure for 2000. This
contributed to the Society's capital ratios being further strengthened.
'Assets increased by 11.9% to £7.2 billion, well ahead of the industry average.
Despite this substantial growth in the Society's business, costs were contained,
with the management expenses to mean assets ratio reducing from 0.70% to 0.67%,
the sixth successive year of improvement, maintaining the Coventry's reputation
as one of the most efficient in the sector.
'We are delighted with our successful 2001. The Coventry goes from strength to
strength, passing on to more and more people the benefits of membership of their
Society.'
Editor's Notes
• Coventry Building Society is currently the 5th largest building
society in the UK
• Full details of the Society's financial results for the year ended
31 December 2001 are attached and are also available in the Media Room
on our website - www.coventrybuildingsociety.co.uk
• Martin Ritchley, Chief Executive is available for interview and
comment.
• Photographs of Martin Ritchley can also be downloaded from the Media
Room on the website
For more information or additional comment please contact:
Yvonne White or Tina Shields on 0870 607 7727 or 07790 880 880 (out of hours)
E-mail: media.coventrybuildingsociety@dial.pipex.com
Visit our websites: www.coventrybuildingsociety.co.uk www.remortgages.co.uk
Telephone calls may be monitored or recorded for your protection or for training
purposes.
Coventry Building Society
Results for the year ended 31st December 2001
Key Results Year Ended Year Ended
31.12.01 31.12.00
£m £m
Pre tax profits 42.1 40.7
Gross lending 1,490 1,201
Net lending 616 604
Net receipts from shares (1) 619 405
Total assets 7,193 6,429
Key Ratios Year Ended Year Ended
31.12.01 31.12.00
% %
Asset growth 11.88 13.15
Gross capital 5.88 5.77
Free capital 5.63 5.44
Net interest margin (2) 1.08 1.17
Management expenses to average assets (2) 0.67 0.70
Operating profit to average assets (2) 0.62 0.64
Profit after tax to average assets (2) 0.42 0.46
Income and Expenditure Account Year Ended Year Ended
31.12.01 31.12.00
£m £m
Net interest receivable 73.6 70.6
Other income and charges 16.7 12.4
Total income 90.3 83.0
Management expenses (45.5) (42.7)
Provisions for bad and doubtful debts (2.7) (1.5)
Operating profit 42.1 38.8
Profit on disposal of fixed assets - 1.9
Profit before tax 42.1 40.7
Tax (13.7) (13.1)
Profit after tax 28.4 27.6
There are no recognised gains or losses other than the profit for either
financial year.
Balance Sheet As at 31.12.01 As at 31.12.00
£m £m
Assets
Liquid assets 1,331.9 1,180.7
Mortgages 5,824.7 5,211.4
Fixed assets 28.9 29.3
Other assets 7.1 7.6
Total assets 7,192.6 6,429.0
Liabilities
Shares 5,178.1 4,559.2
Borrowings 1,574.2 1,480.4
Other liabilities 43.6 41.1
Subordinated liabilities 20.0 -
Permanent interest bearing shares 40.0 40.0
Reserves 336.7 308.3
Total liabilities 7,192.6 6,429.0
Cash Flow Statement Year Ended Year Ended
31.12.01 31.12.00
£m £m
Net cash inflow from operating activities 79.3 126.3
Returns on investments and servicing of finance (4.8) (4.8)
Taxation (14.8) (12.2)
Capital expenditure and financial investment:
Purchase of investment securities (2,096.0) (2,269.4)
Sale and maturity of investment securities 2,024.0 2,186.1
Purchase of fixed assets (4.6) (3.1)
Sale of fixed assets 0.1 4.4
Finance lease payments (0.2) (0.2)
Financing
Issue of subordinated liabilities 20.0 -
Increase in cash 3.0 27.1
Notes to the accounts.
(1) Includes interest added to the accounts.
(2) The net interest margin, management expenses, operating profit and
profit after tax ratios have all been calculated on the basis of the
average of the 2001 and 2000 total assets.
This announcement will be sent to holders of the Society's Permanent Interest
Bearing Shares.
Copies are available from Head Office:
Coventry Building Society, Economic House, PO Box 9, High Street, Coventry. CV1
5QN.
Telephone (0845 7665522) www.coventrybuildingsociety.co.uk
The Society introduces only to Norwich Union Marketing Group, members of which
are regulated by the Financial Services Authority for life assurance, pensions
and investments.
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