FTAdviser.com

Advertising

This figure equates to almost 3 per cent of the total market and around 25 per cent of net lending by building societies.

In its interim results for the six months ending 30 June, Coventry revealed its total mortgages and other loans grew by £862m (7 per cent) in the first half of the yeas, and by £1.93bn (18 per cent) in 12 months since 30 June 2007.

Gross mortgage advances totalled £1.91bn, an increase of 1 per cent over the 2007 first half year.

Meanwhile, credit quality remained high with just 0.18 per cent of accounts more than six months in arrears. This figure is one third of the Council of Mortgage Lenders' average.

David Stewart, chief executive of Coventry Building Society, said: "I am pleased with our performance in the first half of 2008. We have increased our market share and, as a result, I can report strong growth in savings and mortgages.

"There is no doubt that this is a tough climate for mortgage lenders. However, our ability to attract and retain retail savings and our consistent focus over many years on low risk lending means we have been able to meet the challenges that we have faced."

Overall, Coventry's profit before tax increased by 8 per cent to £35.5m for the first half of the year, up from £32.9m for the corresponding period in 2007.

Retail savings balances increased by £905m (9 per cent) during the first six months, and by £2.74bn (32 per cent) in the 12 months since 30 June 2007.