- Coventry Building Society profits fell on rising costs as the company ramped up strategic investments.

For the year ended 31 December, profit before tax fell to £202m from £243m and net interest income increased to £426m from £411m a year earlier.

The slump in profits was primarily driven by a £41m increase in costs relating to the Society's strategic investment programmes.

Without this additional cost, profit before tax was broadly in line with 2017.

Net interest margin decreased by six basis points to 0.96% in the year to 31 December 2018 as company paid above market rates to savers. 'Brexit, along with concerns about the global economy, has a limited direct impact on us outside of wholesale funding. However, the wider economic consequences will impact the Society. These impacts may result in a decline in consumer confidence and the extension of the low interest rate environment,' the company said.

Story provided by