Coventry Building Society records record results

The UK's third largest building society has posted record results for the past six months.

The Coventry Building Society said its "simple business model" had led to a 40% rise in underlying pre-tax profits to £46.5m to the end of June.

Funding mortgage lending through savers' deposits helped it "remain open for business" during the financial crisis, a spokesman said.

In March it announced a deal with the Stroud & Swindon Building Society.

'Right business model'

The merger will create a combined group with £21.1bn of assets with 91 branches and agencies across the South West and the Midlands, the building society said at the time.

The Coventry said on Wednesday the merger was still on course to be completed by September.

According to the figures released on Wednesday, net mortgage lending totalled £751m up to June with the increase in lending gives the group a record net mortgage market share of 31%.

Chief executive David Stewart, said: "From the very start of the credit crunch, it was my belief that Coventry had the right business model for these difficult times.

"Subsequent events have shown this to be the case and I remain confident of further progress in 2010 and beyond."