Half Year Results

Coventry Building Society 
21 August 2001

Immediate Release
                                                    21 August 2001



                COVENTRY ANNOUNCES EXCEPTIONAL HALF YEAR RESULTS

Coventry Building Society, the UK's 5th largest building society, has today
announced its results for the six months to 30 June 2001.

Key highlights for the six months include:-



*  Over 18% growth in commercial assets during the year to 30 June 2001

*  Record gross lending of £861 million - up 76.8% on the comparable period last
   year

*  Net lending of £486 million - up 125% on the first half of 2000

*  Net savings receipts more than doubled to £324 million

*  Pre-tax profits increased to £19.1 million - despite narrowing of
   interest margin to 1.09%

*  Costs to average assets ratio reduced still further to 0.69%



Commenting upon the results, Martin Ritchley, Chief Executive said: 'Once
again, our results continue to demonstrate the advantages we enjoy as a
building society.   With no dividends to pay to outside shareholders, we have
been able to narrow our interest margin still further to 1.09% of average
assets,  which has benefited our savers and borrowers in the form of even more
competitive interest rates; as a consequence, the Society has attracted
substantial new business and achieved significant growth.  Our total assets
have now increased to £6.9 billion, reflecting growth in commercial assets of
9.3% in the half year and 18.1% for the twelve months to 30 June 2001.


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/continued..........



'In addition, the management expenses ratio has been reduced still further to
0.69% of average assets - reinforcing the Coventry's position as one of the
most cost efficient building societies in the UK.



'Gross mortgage advances amounted to £861 million (2000 - £487 million) a
record for a six month period and well ahead of the Society's 'natural' market
share.   Net lending of £486 million (2000 - £216 million), represents more
than twice the Society's 'natural' market share.   The Society continues to
attract remortgage business from competitors, which has been particularly
influential in achieving these outstanding results.



'Net savings receipts in the six months totalled £324 million, more than
double the £153 million achieved in the first half of 2000.  Pre-tax profits
were up by 3.2% to £19.1 million, enabling the Society to maintain strong
capital ratios.  A key element of the improved profitability is the increase
in other income - up more than 60% to £7.4 million, reflecting the Society's
success in diversifying its income streams from a wider range of financial
services products.



'I am delighted with our half year results which are impressive by any
standards; they show that Coventry Building Society continues to go from
strength to strength.  We look forward to building on this success for the
remainder of 2001 and delivering the benefits of building society membership
to more and more people in the years ahead.'





Editor's Notes

Full details of the Society's financial results for the half year to 30 June
2001 are attached.

Martin Ritchley, Chief Executive is available for interview and comment.



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Key Results                      Half Year Ended    Year Ended   Half Year Ended

                                       30.06.01       31.12.00         30.06.00
                                          £m             £m                 £m

Pre tax profits                          19.1          40.7                18.5
Mortgage provisioning                     1.6           1.5                 0.7
Gross lending                             861         1,201                 487
Net lending                               486           604                 216
Net receipts from shares (1)              324           405                 153
Total assets                            6,902         6,429               5,972


Key Ratios                                   Half Year         Year    Half Year
                                                 Ended        Ended       Ended
                                              30.06.01     31.12.00     30.06.00

                                                    %            %           %

Asset growth                                      7.35     13.15           5.12
Commercial asset growth                           9.30     13.06           4.67
Gross capital                                     5.89      5.77           5.97
Free capital                                      5.63      5.44           5.50
Net interest margin (2)                           1.09      1.17           1.22
Management expenses to average assets             0.69      0.70           0.72
(2)
Profit before tax to average assets (2)           0.58      0.67           0.64


Income and Expenditure Account              Half Year    Year Ended   Half Year
                                              Ended                     Ended
                                                          31.12.00
                                            30.06.01                  30.06.00
                                                        
                                                £000      £000            £000
Net interest receivable                       36,000     70,641         35,265
Other income and charges                       7,431     12,306          4,538

Total income                                  43,431     82,947         39,803
Management expenses                         (22,791)   (42,651)       (20,939)

Provisions for bad and doubtful debts        (1,575)    (1,531)          (734)
Operating profit                              19,065     38,765         18,130

Profit on disposal of fixed assets                11      1,913            352
Profit before tax                             19,076     40,678         18,482

Tax                                          (6,391)   (13,081)        (5,545)
Profit after tax                              12,685     27,597         12,937



There are no recognised gains or losses other than the profit for the
financial period.


Balance Sheet                      As at 30.06.01 As at 31.12.00 As at 30.06.00

                                        £000           £000           £000
Assets

Liquid assets                           1,169,403      1,180,652      1,105,390

Mortgages                               5,696,153      5,211,411      4,824,907

Fixed assets                               27,905         29,267         32,933

Other assets                                8,411          7,693          9,177

Total assets                            6,901,872      6,429,023      5,972,407

Liabilities

Shares                                  4,833,288      4,559,230      4,307,533

Borrowings                              1,586,280      1,480,451      1,280,601

Other liabilities                          51,393         41,116         50,706

Subordinated liabilities                   20,000              -              -

Permanent interest bearing shares          40,000         40,000         40,000

Reserves                                  320,911        308,226        293,567

Total liabilities                       6,901,872      6,429,023      5,972,407



Cash Flow Statement                           Half Year     Year      Half Year
                                                 Ended     Ended         Ended

                                              30.06.01    31.12.00    30.06.00

                                                  £000        £000        £000
Net cash inflow from operating activities        76,875   126,363       124,411
Returns on investments and servicing of          (2,425)   (4,850)       (2,425)
finance
Taxation                                         (5,118)  (12,205)       (3,146)
Capital expenditure and financial
investment:
                                               
   Purchase of investment securities        (1,037,500) (2,269,444) (1,267,720)
                                                948,954 2,186,163     1,177,532
   Sale and maturity of investment
   securities                                   (1,969)   (3,107)       (1,914)

   Purchase of fixed assets                           -     4,397           834

   Sale of fixed assets                           (196)     (234)         (120)

   Finance lease payments

Financing                                        20,000         -             -

   Issue of subordinated liabilities
(Decrease)/increase in cash                     (1,379)    27,083        27,452




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 before tax as a percentage of average assets have been
        calculated on an annualised basis taking into account the number of days
        in the six month period.