Excellent progress on integration while strengthening the foundations for the future.

Commenting on our results, Steve Hughes, Chief Executive Coventry Building Society, said:

"I'm pleased with the progress in the first half of 2026, strengthening the foundations of the combined Group through successful integration and building momentum behind our strategy. 

We have delivered a robust financial performance despite a difficult geopolitical backdrop, challenging external trading conditions and intense market competition. We have operated in a disciplined way with a clear focus on capital.

We expect competition to remain elevated, digitisation and AI adoption to continue at pace and the demands of consumers to continue to change. The rationale for our acquisition is even more compelling and we will focus on realising the power of the combination through a multi-year investment programme.

The Group remains absolutely focused on delivering the right outcomes for our members and customers as we continue our journey of building a purpose-led organisation that will stand out in UK financial services."

Excellent delivery on integration as it moves into its final phase, with continued focus on capital accretion

• Underlying¹ profit before tax decreased to £183 million (H1 2025: £200 million) in line with expectations, primarily reflecting base rate reductions over the past 12 months and a very competitive market environment.
• Statutory profit before tax decreased to £125 million (H1 2025: £722 million), due to the inclusion in the prior year of a £584 million one off gain from the acquisition of the Bank and further integration related costs in the period.
• Underlying¹ income of £531 million (H1 2025: £560 million) and net interest margin of 1.19% (H1 2025: 1.24%), with the reduction related mainly to the increasingly competitive trading conditions, particularly on our retail deposits.
• The Group's underlying¹ costs remained stable at £350 million (H1 2025: £351 million) which reflects the delivery of our first phase of efficiencies as we integrate the Society and the Bank, offsetting inflationary pressures.
• We continue to prioritise our leverage ratio, which has improved to 4.8% (FY 2025: 4.6%) and our CET 1 ratio is stable at 19.6% (FY 2025: 19.7%). Both measures are well above regulatory levels.
• Integration remains on track as the programme enters into its final phase, having successfully consolidated support functions, and which has included integrating our finance, people and procurement systems. Plans are progressing to transfer the Bank’s assets and liabilities² into the Society in early 2027 and bring eligible Bank customers into membership.

Delivering for our members and our personal and business customers

• The mortgage market remained very competitive, with compressed margins. We have prioritised value over volume for new lending resulting in a reduction on our mortgage book of £0.8 billion. Supporting first time buyers is core to our purpose and a key objective, helping over 4,300 members and customers onto the property ladder.
• The Group has 744,000 (FY 2025: 759,000) active personal current accounts. We have recently enhanced our proposition by launching a market-leading switcher offer in June, supported by improvements including fee-free overseas spending and materially improved packaged accounts as we look to deepen relationships across the Group. 
• We increased our active business banking customers by almost 2,000 to 82,000 and opened over 7,000 accounts.
• The Society has continued to offer competitive savings products with a £157 million premium³ (H1 2025: £201 million) above the market average being paid to members. The reduction is as a result of lower bank base rate and the more competitive savings market.
• We have introduced a new unified framework for a Group Net Promoter Score⁴ (NPS) in the period, incorporating the transactional banking activities of The Co-operative Bank. To date we have achieved a strong NPS of +56 and continue to deliver high levels of customer service to members, customers and intermediary partners along with improvements to our digital capabilities.

Supporting our colleagues and the communities we serve

• Colleague feedback and engagement remains a priority as we continue to bring both organisations together. Our latest quarterly engagement survey shows that 70% of colleagues believe the Group is a great place to work.
• The Group has once again been named as one of the UK's Best Workplaces^TM for Wellbeing⁵, recognising our commitment to supporting colleagues' physical, mental, financial and social wellbeing.
• We have invested over £1 million in our communities, supporting youth homelessness, financial inclusion and community resilience, and reaching more than 1,000 young people through careers and skills initiatives.