Final Results

Coventry Building Society 
20 February 2001

                           
                ANOTHER OUTSTANDING YEAR
                    FROM THE COVENTRY
                            
Coventry Building Society, the UK's 5th largest building
society,  announces outstanding results for the year
ended 31 December 2000.   Key highlights of an
exceptional year for the Coventry include:

*    Gross lending of £1.2 billion - up 14.3% - a record
     for the Society and significantly ahead of 'natural'
     market share
*    Net mortgage lending of £604 million - up 19.2%
*    Net savings receipts of £405 million -  well ahead
     of 'natural' market share
*    Total assets of £6.4 billion - annual growth of 13.2%
*    Net interest margin narrowed from 1.24% to 1.17%
*    Over £30 million returned to members in the year -
     through lower mortgage rates and higher savings rates
*    Management expenses ratio down from 0.73% to 0.70% -
     efficiency improved and one of the lowest ratios of
     any building society in the UK
*    Pre-tax profit up from £34.8 million to £40.7 million
*    12 months plus mortgage arrears at the lowest level
     for over 10 years

Commenting on the Society's performance, Martin Ritchley,
Chief Executive said: 'Once again our results quite
clearly demonstrate the benefits which our building
society status bring to our savers and borrowers.  Over
the last five years we have returned over £120 million to
our members, in the form of better savings rates and
lower mortgage rates.

'In 2000, we have deliberately narrowed our interest
margin still further, from 1.24% to 1.17% of average
assets, so that we can offer even more competitive
interest rates to our members.  This has enabled us to
grow our business substantially, with assets having
increased by an impressive 13.2% to £6.4 billion.

'Despite the deliberate narrowing of interest margin, the
Society's profit was up by 16.8% to £40.7 million,
enabling us to maintain strong capital ratios.

'A significant element of our record gross mortgage
lending of £1.2 billion, has been through remortgage
business, with more and more people seeking the
advantages which membership of Coventry Building Society
bring.    Whilst all of our distribution channels have
played their part in this success, the launch of our new
internet site, www.remortgages.co.uk, has been
particularly influential and we look forward to
developing new technology even further as we continue to
grow.

'Our strategy is working.  The Society's efficiency has
improved for the fifth successive year, our assets have
grown substantially and we continue to deliver more
benefits to members.  We look forward to building upon
this success in 2001 and beyond.'

Editor's Notes
Full details of the Society's financial results for the
year ended 31 December 2000 are attached.
Martin Ritchley, Chief Executive is available for
interview and comment.


 
Key Results                           Year       Year
                                     Ended      Ended
                                  31.12.00   31.12.99
                                        £m         £m
                                                   
Pre tax profits                       40.7       34.8
Mortgage provisioning                  1.5        1.5
Gross lending                        1,201      1,051
Net lending                            604        507
Net receipts from shares (1)           405        592
Total assets                         6,429      5,682



Key Ratios                            Year       Year
                                     Ended      Ended
                                  31.12.00   31.12.99
                                         %          %
                                                   
Asset growth                         13.15       8.61
Gross capital                         5.77       6.03
Free capital                          5.44       5.48
Net interest margin (2) and (3)       1.17       1.24
Management expenses to average                     
assets (2)                            0.70       0.73
Profit after tax to average          
assets (2)                            0.46       0.45



Income and Expenditure Account       Year  Year Ended
                                    Ended    31.12.99
                                 31.12.00          as
                                             restated
                                                  (3)
                                     £000        £000
                                                     
Net interest receivable            70,641      67,667
Other income and charges           12,306       8,514
                                   ------      ------
Total net income                   82,947      76,181
Management expenses              (42,651)    (40,043)
Provisions for bad and doubtful   
debts                             (1,531)     (1,536)
                                   ------      ------
Operating profit                   38,765      34,602
Profit on disposal of fixed         
assets                              1,913         223
                                   ------      ------
Profit before tax                  40,678      34,825
Tax                              (13,081)    (10,506)
                                  -------     -------
Profit after tax                   27,597      24,319



Balance Sheet                        As at      As at
                                  31.12.00   31.12.99
                                      £000       £000
Assets                                             
Liquid assets                    1,180,652  1,026,705
Mortgages                        5,211,411  4,609,604
Fixed assets                        29,267     35,271
Other assets                         7,693     10,109
                                   -------   --------
Total assets                     6,429,023  5,681,689
                                  --------   --------
                                                   
Liabilities                                        
Shares                           4,559,230  4,154,717
Borrowings                       1,480,451  1,163,931
Other liabilities                   41,116     42,412
Subscribed capital                  40,000     40,000
Reserves                           308,226    280,629
                                   -------    -------
Total liabilities                6,429,023  5,681,689
                                  --------   --------


Statement of Total Recognised         Year       Year
Gains and Losses                     Ended      Ended
                                  31.12.00   31.12.99
                                      £000       £000
                                                   
Profit for the financial year       27,597     24,319
Unrealised surplus on                              
 revaluation of properties               -        832
                                    ------     ------
Total gains and losses                             
 recognised since last                         
 annual report                      27,597     25,151



Cash Flow Statement                   Year         Year
                                     Ended        Ended
                                  31.12.00     31.12.99
                                      £000         £000
                                                     
Net cash inflow from operating                       
 activities                        126,363        8,607
Returns on investments and                           
 servicing of finance              (4,850)      (4,850)
Taxation                          (12,205)     (15,253)
Capital expenditure and                              
financial investment:
 Purchase of investment        (2,269,444)  (1,760,065)
  securities                              
 Sale and maturity of                                
  investment securities          2,186,163    1,677,045
 Purchase of fixed assets          (3,107)      (7,354)
 Sale of fixed assets                4,397          463
 Finance lease payments              (234)        (345)
                                  --------     --------
Increase/(Decrease) in cash         27,083    (101,752)



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  1999  and
2000  total  assets.  (3) Income of £5,324,000  in  1999,
previously included within other income and charges,  has
been redesignated as net interest receivable.

For more information or additional comment please contact
Yvonne White, Media Relations Manager or Tina McConomy,
Media Relations Assistant on 024 7665 3653 or 07774
836490 (out of hours)
E-mail: [e-mail]

Visit our websites: www.coventrybuildingsociety.co.uk
www.Remortages.co.uk

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Coventry Building Society introduces only to Norwich
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assurance, pensions and investments.