Interim Results

COVENTRY BUILDING SOCIETY
24 August 1999


   COVENTRY ANNOUNCES FURTHER SUCCESS IN FIRST HALF OF 1999
                               

*   Gross advances £530 million - up from £505 million
*   Savings receipts £157 million - substantially ahead of
    'natural' market share
*   Profit unchanged at £17.6 million - despite deliberate
    narrowing of interest margin
*   Annual commercial asset growth of 17.5%
*   Total assets up to £5.35 billion


Coventry Building Society, the UK's sixth largest building
society, has today announced impressive results for the first
half of 1999.

Gross mortgage advances totalled £530 million, an increase of
£25 million on the first half of 1998.  Net lending totalled
£305 million, substantially ahead of the Society's 'natural'
market share.

Net receipts from savers amounted to £157 million, substantially ahead of
the Society's 'natural' share and bucking the trend
experienced by many other savings institutions which have
found it difficult to retain savers in the lower interest rate
environment which now prevails.

Total assets increased to £5.35 billion, representing half
year growth in commercial assets of 7.4% and 17.5% for the
full year to 30 June, reflecting the Society's success in
attracting and retaining both mortgage and savings business.
With a costs to mean assets ratio of 0.77% at the end of 1998,
the Society was already the most cost efficient society in the
country.  Further progress was made in the first half of 1999,
with the ratio reducing to 0.75%.

Pre-tax profits for the six months totalled £17.6 million - no
change on the comparable period in 1998, despite the fact that
the Society has narrowed still further its interest margin to
1.21% of average assets for the benefit of savers and
borrowers - amongst the lowest in the sector and substantially
narrower than its banking competitors.

Commenting upon these results, Martin Ritchley, Chief
Executive of the Coventry said:

'Our results continue to demonstrate the important advantage
we enjoy as a building society.  With no dividends to pay to
outside shareholders, we have been able to reduce our interest
margin still further for the benefit of our savers and
borrowers.  This has enabled us to achieve impressive growth
and continue to capture market share from our competitors.

'Our competitiveness is achieving growing independent
recognition.  For the third time in succession, Moneyfacts
rated the Coventry as top of the league table for the twelve
months ended 30 June 1999, for charging established borrowers
the lowest level of interest of any major lender.

'Since the half year end, we have also announced our intention
to narrow out interest margin still further, so as to deliver
additional benefits to savings members at a time when interest
rates generally have been falling.  In particular, this has
focused upon our range of Individual Savings Accounts.  Our
Privilege ISA offers established members of five years or more
an outstanding rate of 7.00% whilst enjoying the tax
advantages which such accounts bring.  Equally, our Square
Deal ISA offers a market leading 6.55% which is available to
everyone.  These are further examples of the ongoing benefits
which building society status can deliver to our members.

'Our results demonstrate that we have a proven formula for
success.  We aim to grow our business still further, so that
we can deliver the benefits of building society membership to
more and more people in the future.'



UNAUDITED SOCIETY RESULTS FOR THE HALF YEAR ENDED 30TH JUNE
1999


KEY RESULTS


                         Half Year         Year    Half Year
                             Ended        Ended        Ended
                          30.06.99     31.12.98     30.06.98
                                £m           £m           £m
                                                            
Pre tax profits               17.6         37.3         17.6
                                                            
Mortgage provisioning          1.1          1.5          1.4
                                                            
Gross lending                  530        1,124          505
                                                            
Net lending                    305          679          324
                                                            
Net receipts from                                           
shares (1)                     157          456          212
                                                            
Total assets                 5,346        5,231        4,759


KEY RATIOS


                         Half Year         Year    Half Year
                             Ended        Ended        Ended
                          30.06.99     31.12.98     30.06.98
                                 %            %            %
                                                            
Commercial asset                                            
growth                        7.40        19.72         9.42
                                                            
Total asset growth            2.18        19.99         9.15
                                                            
Gross capital                 6.18         6.04         6.38
                                                            
Free capital                  5.60         5.45         5.75
                                                            
Net interest                                                
margin (2)                    1.21         1.24         1.29
                                                            
Management expenses                                         
to mean assets (2)            0.75         0.77         0.80
                                                            
Profit after tax to                                         
mean assets (2)               0.47         0.52         0.54



INCOME AND EXPENDITURE ACCOUNT


                          Half Year         Year    Half Year
                              Ended        Ended        Ended
                           30.06.99     31.12.98     30.06.98
                              £'000         £000         £000
                                                             
Net interest                                                 
receivable                   31,670       59,674       29,167
                                                             
Other income and                                             
charges                       6,772       15,951        7,949
                           --------     --------     --------
                                                             
Total net income             38,442       75,625       37,116
                                                             
Administrative                                               
expenses                   (19,732)     (36,805)     (18,145)
                                                             
Mortgage provisioning       (1,125)      (1,511)      (1,398)
                           --------     --------     --------
                                                             
Profit before tax            17,585       37,309       17,573
                                                             
Tax                         (5,319)     (12,286)      (5,448)
                           --------     --------     --------
                                                             
Profit after tax             12,266       25,023       12,125
                           --------     --------     --------


BALANCE SHEET


                             As At        As At        As At
                          30.06.99     31.12.98     30.06.98
                              £000         £000         £000
                                                            
Assets                                                      
                                                            
Liquid assets              893,137    1,083,385      966,363
                                                            
Commercial assets        4,407,220    4,103,536    3,750,562
                                                            
Fixed assets                34,484       32,941      30,67 9
                                                            
Other assets                10,673       11,473       11,193
                                                            
                         ---------    ---------    ---------
Total assets             5,345,514    5,231,335    4,758,797
                         ---------    ---------    ---------

                                                            
Liabilities                                                 
                                                            
Shares                   3,719,797    3,562,698    3,311,684
                                                            
Deposits and other                                          
borrowings               1,260,566    1,331,248    1,115,947
                                                            
Other liabilities           57,410       41,911       48,591
                                                            
Subscribed capital          40,000       40,000       40,000
                                                            
General reserve            267,741      255,478      242,575
                                                            
                         ---------    ---------    ---------
Total liabilities        5,345,514    5,231,335    4,758,797
                         ---------    ---------    ---------

Notes to the accounts.  (1) Includes interest added to
accounts.  (2) Net interest margin, management expenses as a
percentage of mean assets and profit after tax as a percentage
of mean assets have been calculated on an annualised basis
taking into account the number of days in the six month
period.


For more information or additional comments please contact
Yvonne White on 02476 653653 (Direct Press Line) or 0374
836490 (Mobile)
Coventry Building Society Press Office
PO Box 600, Oakfield House, Binley Business Park, Coventry,
CV3 2TQ
Web site: www.covbsoc.co.uk