Interim Results

Coventry Building Society
22 August 2000

             COVENTRY ANNOUNCES HALF YEAR RESULTS

     *    Savings receipts £153 million - well above 'natural'
          market share
     *    Gross advances £487 million - above 'natural' market
          share
     *    Pre tax profit up to £18.5 million - despite further
          narrowing of interest margin to 1.13% of assets
     *    Total assets up to almost £6 billion - annual growth of
          11.73%

Coventry Building Society, the UK's sixth largest building
society, has today announced its results for the six months to
30 June 2000.

Net receipts from savers amounted to £153 million,
substantially ahead of the Society's 'natural' market share,
reflecting the highly competitive savings products offered by
the Society.  During the six months, over 100,000 new savings
accounts were opened, substantially increasing the Society's
membership base.

Gross mortgage advances totalled £487 million and net lending
totalled £216 million, again well ahead of the Society's
'natural' market share.

Total assets increased to £5.97 billion, representing half
year growth of 5.12% and 11.73% for the full year to 30 June,
reflecting the Society's success in attracting and retaining
both mortgage and savings business.  The Society is already
one of the most cost efficient in the country, but the
management expenses to assets ratio has been reduced still
further to 0.72% of average assets.

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

'As a committed building society, the Coventry has
consistently operated on one of the narrowest interest margins
of any financial institution in the United Kingdom, enabling
highly competitive interest rates to be offered to savers and
borrowers.  In the first half of 2000, the interest margin has
been narrowed still further to 1.13% of average assets.
Nevertheless, the pre tax profit amounted to almost £18.5
million - nearly £1 million up on the comparable period of
1999, enabling the Society to maintain its strong capital
ratios.

'Our results continue to demonstrate the important advantages
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 has achieved growing independent
recognition.  For the fifth successive occasion, Moneyfacts
has recently rated the Coventry as top of the league table for
charging established borrowers the lowest amount of interest
of any major lender measured over the past three years.

'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
2000


KEY RESULTS

                         Half Year         Year    Half Year
                             Ended        Ended        Ended
                          30.06.00     31.12.99     30.06.99
                                £m           £m           £m
                                                            
Pre tax profits               18.5         34.8         17.6
                                                            
Mortgage provisioning          0.7          1.5          1.1
                                                            
Gross lending                  487        1,051          530
                                                            
Net lending                    216          507          305
                                                            
Net receipts from                                           
shares (1)                     153          592          157
                                                            
Total assets                 5,972        5,682        5,346



KEY RATIOS

                         Half Year         Year    Half Year
                             Ended        Ended        Ended
                          30.06.00     31.12.99     30.06.99
                                 %            %            %
                                                            
Asset growth                  5.12         8.61         2.18
                                                            
Gross capital                 5.97         6.03         6.18
                                                            
Free capital                  5.50         5.48         5.60
                                                            
Net interest                                                
margin (2)                    1.13         1.14         1.21
                                                            
Management expenses                                         
to mean assets (2)            0.72         0.73         0.75
                                                            
Profit after tax to                                         
mean assets (2)               0.45         0.45         0.47



INCOME AND EXPENDITURE ACCOUNT

                          Half Year         Year    Half Year
                              Ended        Ended        Ended
                           30.06.00     31.12.99     30.06.99
                               £000         £000         £000                 
                                                                 
Net interest                                                 
receivable                   32,729       62,343       31,670
                                                             
Other income and                                             
charges                       7,426       14,061        6,772
                           --------     --------     --------
                                                             
Total income                 40,155       76,404       38,442
                                                             
Management expenses        (20,939)     (40,043)     (19,732)
                                                             
Provisions for bad and                                       
doubtful debts                (734)      (1,536)      (1,125)
                           --------     --------     --------
                                                             
Profit before tax            18,482       34,825       17,585
                                                             
Tax                         (5,545)     (10,506)      (5,319)
                           --------     --------     --------
                                                             
Profit after tax             12,937       24,319       12,266
                           --------     --------     --------


BALANCE SHEET

                             As At        As At        As At
                          30.06.00     31.12.99     30.06.99
                              £000         £000         £000
                                                            
Assets                                                      
                                                            
Liquid assets            1,105,390    1,026,705      893,137
                                                            
Mortgages                4,824,907    4,609,604    4,407,220
                                                            
Fixed assets                32,933       35,271       34,484
                                                            
Other assets                 9,177       10,109       10,673
                                                            
                         ---------    ---------    ---------
Total assets             5,972,407    5,681,689    5,345,514
                         ---------    ---------    ---------
                                                            
Liabilities                                                 
                                                            
Shares                   4,307,533    4,154,717    3,719,797
                                                            
Borrowings               1,280,601    1,163,931    1,260,566
                                                            
Other liabilities           50,706       42,412       57,410
                                                            
Subscribed capital          40,000       40,000       40,000
                                                            
Reserves                   293,567      280,629      267,741
                                                            
                         ---------    ---------    ---------
Total liabilities        5,972,407    5,681,689    5,345,514
                         ---------    ---------    ---------



STATEMENT OF TOTAL RECOGNISED GAINS AND LOSSES

                         Half Year         Year    Half Year
                             Ended        Ended        Ended
                          30.06.00     31.12.99     30.06.99
                              £000         £000         £000
                                                            
Profit for the                                              
financial year              12,937       24,319       12,266
                                                            
Unrealised surplus on                                       
revaluation of                   -          832            -
properties
                         ---------    ---------    ---------
Total gains and                                             
losses recognised                                           
since last annual           12,937       25,151       12,266
report
                         ---------    ---------    ---------



CASH FLOW STATEMENT

                         Half Year         Year    Half Year
                             Ended        Ended        Ended
                          30.06.00     31.12.99     30.06.99
                              £000         £000         £000
                                                            
Net cash inflow from                                        
operating activities       124,411        8,607    (128,351)
                                                            
Returns on                                                  
investments and            (2,425)      (4,850)      (2,425)
servicing of finance
                                                            
Taxation                   (3,146)     (15,253)            -
                                                            
Capital expenditure                                         
and financial
investments
                                                            
Purchase of                                                 
investment securities  (1,267,720)  (1,760,065)    (844,777)
                                                            
Sale and maturity of                                        
investment securities    1,177,532    1,677,045      874,738
                                                            
Purchase of fixed          (1,914)      (7,354)      (5,424)
assets
                                                            
Sale of fixed assets           834          463          294
                                                            
Finance lease                (120)        (345)        (113)
payments
                         ---------    ---------    ---------
(Decrease)/Increase                                         
in cash                     27,452    (101,752)    (106,058)
                         ---------    ---------    ---------



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, Media Relations Manager or Tina McConomy, Media
Relations Assistant on 024 76 653653 or 07774 836490 (out of
hours)

E-mail: [e-mail]
Web site: www.coventrybuildingsociety.co.uk