Record profit for Coventry Building Society despite downturn

Record pre-tax profits of £84.6million and the creation of 350 jobs made 2011 a good year for Coventry Building Society.


Chief executive David Stewart

The Coventry is bucking the trend in an underfire banking industry with mortgage lending and savings balances up, and top ratings from the major credit rating agencies.

And it has not been as affected as some high street banks by the collapse of the Euro with just £3.4million of dealings with Irish banks and none with fellow eurozone countries Portugal, Italy, Greece and Spain.

The society paid £12.9million tax in 2011 - down on the £15.7million paid in 2010.

Details of the pay and bonuses paid to senior executive will be published in mid March.

Chief executive David Stewart said: "The economic outlook is as uncertain as I can recall. It is imperative the eurozone is stabilised but the implications for economic growth, both domestically and internationally, as governments address the sovereign debt crisis are potentially far-reaching.

"The prediction made previously by many commentators that the base rate would begin to rise during 2011 has been proved wrong and now the equally confident prediction is rates will remain extremely low through 2012 and into 2013.

"The recognition that economic conditions may worsen significantly in 2012 shows there is no room for complacency, but I remain confident Coventry remains well placed to continue to protect members’ interests and report further progress in the years ahead."