Final Results

Coventry Building Society
22 February 2000


            ANOTHER RECORD BREAKING YEAR FOR
                COVENTRY BUILDING SOCIETY
                                                        
*    Record net receipts from savers of £609 million
     - up 41% and double 'natural' share
*    Gross mortgage lending of £1.1 billion
     - significantly ahead of 'natural' share
*    Net mortgage lending of £507 million, representing
     growth of 12.3%
*    Deliberate reduction in profit to £34.8 million, 
     so as to bring further benefits to members
*    Increase in total assets of £450 million to £5.7
     billion
*    Management expenses ratio down from 0.77% to 0.73% 
     - the lowest ever
*    Gross capital maintained at over 6.0%
*    Customer base expanded by 85,000 members



Coventry Building Society, the UK's sixth largest
building society, reports another successful year of
business results for 1999.

Commenting upon the Society's performance, Martin
Ritchley, Chief Executive said: 'With no dividends to pay
to outside shareholders, these results reflect the clear
advantages that building society status brings us in an
increasingly competitve market place.

'Unlike the banks, profit maximisation is not our
objective.  Already, we were operating on one of the
narrowest interest margins of any financial institution,
but in 1999 we have been able to reduce this still
further, from 1.24% to 1.14% of average assets, bringing
further benefits to our savers and borrowers, whilst
maintaining the strong financial ratios for which we are
renowned.

'The competitive rates which we offer have enabled us to
grow our savings and mortgage business substantially.
Record net receipts from savers of £609 million
represented a 41% improvement on last year's figure,
which in itself was a record. In addition, for the second
year running, mortgage lending exceeded £1 billion,
significantly ahead of the Society's 'natural' market
share.  Consequently, our customer base has expanded by
an impressive 85,000 members.

'Despite the narrowing of interest margin and the
consequent reduction in profitability, the Society's
gross capital ratio remained virtually unchanged at
6.03%.  In addition, the Society improved its efficiency
for the fourth year running, with the ratio of management
expenses to average assets reducing to 0.73% - the lowest
ever and one of the best in the sector.

'Our aim is to establish long term relationships with an
increasing number of saving and borrowing members.  In
December 1999, for the fourth time in succession,
Money£acts identified Coventry Building Society's
Privilege Rate mortgage as charging the least amount of
interest to established borrowers of any top 30 UK
mortgage lender.  In April last year, we extended this
concept to savers as well, with the launch of our
Privilege ISA, which has offered a market leading rate
ever since and has delivered additional benefits to even
more long standing members.

'We are delighted with our results for 1999 which
continue to demonstrate the tangible benefits which we
are delivering to our members year after year.  At a time
when converted societies are struggling to maintain
market share whilst satisfying outside shareholders,
Coventry Building Society continues to go from strength
to strength.'


Editor's Notes

Financial results for the year ended 31 December 1999 are
attached.
Chief Executive, Martin Ritchley is available for
interview and comments - please telephone the Press
Office to arrange.




Key Results                          Year      Year
                                    Ended     Ended
                                 31.12.99  31.12.98
                                       £m        £m
                                                   
Pre tax profits                      34.8      37.3
Mortgage provisioning                 1.5       1.5
Gross lending                       1,051     1,124
Net lending                           507       678
Net receipts from shares (1)          609       433
Total assets                        5,682     5,231



Key Ratios                           Year      Year
                                    Ended     Ended
                                 31.12.99  31.12.98
                                        %         %
                                                   
Commercial asset growth             12.33     19.72
Gross capital                        6.03      6.04
Free capital                         5.48      5.45
Net interest margin (2)              1.14      1.24
Management expenses to average                     
 assets (2)                          0.73      0.77
Profit after tax to average          
 assets (2)                          0.45      0.52



Income and Expenditure Account       Year      Year
                                    Ended     Ended
                                 31.12.99  31.12.98
                                     £000      £000
                                                   
Net interest receivable            62,343    59,674
Other income and charges           14,061    15,951
                                   ------    ------
Total net income                   76,404    75,625
Management expenses               (40,043)  (36,805)
Provisions for bad and    
 doubtful debts                    (1,536)   (1,511)
                                   ------    ------
Profit before tax                  34,825    37,309
Tax                               (10,506)  (12,286)
                                  -------   -------
Profit after tax                   24,319    25,023



Balance Sheet                       As at      As at
                                 31.12.99   31.12.98
                                     £000       £000
Assets                                             
Liquid assets                   1,026,705  1,083,385
Mortgages                       4,609,604  4,103,536
Fixed assets                       35,271     32,941
Other assets                       10,109     11,473
                                   ------     ------
Total assets                    5,681,689  5,231,335
                                ---------  ---------
Liabilities                                        
Shares                          4,154,717  3,562,698
Borrowings                      1,163,931  1,331,248
Other liabilities                  42,412     41,911
Subscribed capital                 40,000     40,000
Reserves                          280,629    255,478
                                  -------    -------
Total liabilities               5,681,689  5,231,335
                                ---------  ---------


Statement of Total Recognised        Year      Year
Gains and Losses                    Ended     Ended
                                 31.12.99  31.12.98
                                     £000      £000
                                                   
Profit for the financial year      24,319    25,023
Unrealised surplus on                              
 revaluation of properties            832         -
                                   ------    ------
Total gains and losses                             
 recognised since last             25,151    25,023
 annual report



Cash Flow Statement                   Year        Year
                                     Ended       Ended
                                  31.12.99    31.12.98
                                      £000        £000
                                                     
Net cash inflow from operating                       
 activities                          8,607     343,482
Returns on investments and                           
 servicing                          (4,850)     (4,850)
 of finance
Taxation                           (15,253)     (8,475)
Capital expenditure and                              
 financial investment:
 Purchase of investment         
  securities                    (1,760,065) (1,972,764)                    
 Sale and maturity of                                
  investment securities          1,677,045   1,681,725
 Purchase of fixed assets           (7,354)     (7,646)
 Sale of fixed assets                  463         286
 Finance lease payments               (345)       (136)
                                  --------    --------
(Decrease)/Increase in cash       (101,752)     31,622



Notes  to  the accounts.  (1) Includes interest added  to
the   accounts.   (2)  Net  interest  margin,  management
expenses  as  a percentage of average assets  and  profit
after  tax  as a percentage of average assets  have  been
calculated  on the basis of the average of the  1998  and
1999 total assets.

For more information or additional comment please contact
Yvonne White on 02476 653 653 (Direct Press Line) or 0374
836490 (Mobile).

Telephone calls may be monitored or recorded for your
protection or training purposes.

Coventry Building Society Press Office
PO Box 600, Oakfield House, Binley Business Park,
Coventry CV3 2TQ
Web site: www.covbsoc.co.uk