Final Results

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: [e-mail]

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 [phone]) 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.



                      This information is provided by RNS
            The company news service from the London Stock Exchange