Friday, 28 February 2014

Coventry BS - 2013 Results

I like this mutual building society and have been a saver with them for many years.

They are the third largest BS in the UK (behind Nationwide and Yorkshire) and have assets of £28 billion.

The Society have today issued their full year results for 2013(link via Investegate)

Profits before tax are up once again by £41m to £132m - an increase of 45%. As a holder of their PIBS in both my sipp drawdown and ISA accounts, the item I always look for is their core tier 1 ratio which is an indicator of the strength of the company. This ratio has increased to 24.3% and continues to be the highest of any UK financial institution (bank or building society). They have maintained their high credit rating throughout the financial crisis and are the only major high street bank or building society not to have been downgraded over recent years.

CEO, David Stewart, commented on the results:

'Our results for 2013 demonstrate that Coventry Building Society remains in good shape, continuing the track record of strong financial performance and genuinely member-focused service established before the onset of the current financial crisis'.

The PIBS are currently priced around the 102p - 103p mark and current yield, paid gross June and December, is 6.0%. They are due to be called (repaid) at 100p in June 2016.

I am happy to continue holding to redemption.

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