Annual report and accounts 2009 (PDF) - Coventry Building Society

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NOTES TO THE ACCOUNTS(continued)22. LOANS AND ADVANCES TO CUSTOMERS (continued)Maturity analysisThe remaining maturity of loans and advances to customers at the balance sheet date is as follows:Group Society Group Society2009 2009 2008 2008£m £m £m £mIn not more than one year 56.5 50.9 62.5 59.9In more than one year 14,041.6 11,364.1 13,131.2 11,161.314,098.1 11,415.0 13,193.7 11,221.2Impairment (note 13) (23.4) (17.8) (20.9) (18.3)(note 40) 14,074.7 11,397.2 13,172.8 11,202.9The maturity analysis is based on contractual maturity not actual redemption levels experienced by the Group or Society.Covered bondsOn 21 April 2008, the Bank of England launched its Special Liquidity Scheme (SLS) which allows financial institutions toswap their high quality mortgage-backed and other securities for UK Treasury Bills for a defined period. In common withmany banks and building societies, the Society has used this facility as an efficient way of maintaining a high level ofliquidity.The Society accessed the SLS by issuing a covered bond and swapping this with the Bank of England for UK Treasury Bills.To establish this structure the Society created a new entity, Coventry Building Society Covered Bonds LLP, which isconsolidated by the Group.Loans and advances to customers include £2,602.6 million (2008 – £2,790.4 million) for both the Group and Society whichhave been transferred from the Society to Coventry Building Society Covered Bonds LLP. The loans secure £2,000.0 million(2008 – £2,000.0 million) of covered bonds issued by the Society. The loans are retained on the Society’s balance sheet as theSociety retains substantially all the risks and rewards relating to the loans.23. INVESTMENTS IN SUBSIDIARY UNDERTAKINGSTotalSociety Shares Loans 2009£m £m £mCost and net book valueAt 1 January - 4,769.5 4,769.5Additions - 544.0 544.0At 31 December - 5,313.5 5,313.5The Society holds 100% of the issued share capital of Godiva Mortgages Limited, an operating subsidiary undertakingincorporated in England and Wales whose principal activity is mortgage lending.The Society also has an interest in Coventry Building Society Covered Bonds LLP that gives rise to risks and rewards that arein substance no different than if it was a subsidiary undertaking. As a consequence this entity is consolidated in the Groupaccounts. Coventry Building Society Covered Bonds LLP is registered in England and Wales. Its principal activity is intragroupmortgage acquisition and guarantor of covered bonds issued by Coventry Building Society.Notes 4 and 5 of the Annual Business Statement include details of all the Society’s subsidiary undertakings.56
24. INTANGIBLE FIXED ASSETSGroup Society Group Society2009 2009 2008 2008£m £m £m £mCostAt 1 January 10.2 9.7 32.8 32.3Additions 4.4 4.4 2.8 2.8Disposals (3.2) (3.2) (25.4) (25.4)At 31 December 11.4 10.9 10.2 9.7AmortisationAt 1 January 1.7 1.2 24.8 24.3Charge for the year 2.7 2.7 2.2 2.2Disposals (2.9) (2.9) (25.3) (25.3)At 31 December 1.5 1.0 1.7 1.2Net book value at 31 December 9.9 9.9 8.5 8.5The intangible assets disclosed above represent software expenditure.25. PROPERTY, PLANT AND EQUIPMENTLand and buildingsEquipment,fixtures,Group and Society Long Short fittings &Freehold leasehold leasehold vehicles Total£m £m £m £m £mCostAt 1 January 2009 7.1 3.5 3.2 39.1 52.9Additions - - - 3.4 3.4Disposals - - - (2.4) (2.4)At 31 December 2009 7.1 3.5 3.2 40.1 53.9DepreciationAt 1 January 2009 1.0 0.2 2.0 23.5 26.7Charge for the year 0.1 0.1 - 3.8 4.0Depreciation on disposals - - - (2.3) (2.3)At 31 December 2009 1.1 0.3 2.0 25.0 28.4Net book value at 31 December 2009 6.0 3.2 1.2 15.1 25.557
Page 1 and 2:
ANNUAL REPORT & ACCOUNTS 2009
Page 3:
ChairmanDavid HardingDeputy Chairma
Page 11 and 12: DIRECTORS’ REPORTBUSINESS OBJECTI
Page 13 and 14: Financial performanceThe Society ac
Page 15 and 16: ASSETSThe assets of the Group incre
Page 17 and 18: KEY PERFORMANCE INDICATORSNET MORTG
Page 19 and 20: Remuneration CommitteeConsisting of
Page 21 and 22: RISK MANAGEMENT REPORTPRINCIPAL RIS
Page 23 and 24: CORPORATE GOVERNANCEThe board is ac
Page 25 and 26: APPOINTMENTS TO THE BOARDThe appoin
Page 27 and 28: DIRECTORS’ REMUNERATION REPORTINT
Page 29 and 30: STATEMENT OF DIRECTORS’RESPONSIBI
Page 31 and 32: OPINIONIn our opinion:the Annual Ac
Page 33 and 34: BALANCE SHEETSas at 31 December 200
Page 35 and 36: CASH FLOW STATEMENTSfor the year en
Page 37 and 38: Improvements to IFRSThe improvement
Page 39 and 40: FINANCIAL LIABILITIESFinancial liab
Page 41 and 42: PENSION COSTSThe Society operates b
Page 43 and 44: Loan impairment and other provision
Page 45 and 46: 7. OTHER OPERATING INCOMEGroup Soci
Page 47 and 48: 11. DIRECTORS’ EMOLUMENTS (contin
Page 49 and 50: 12. PENSION SCHEME (continued)2009
Page 51 and 52: 13. IMPAIRMENT PROVISIONS ON LOANS
Page 53 and 54: 14. PROVISION FOR FSCS LEVIESAll de
Page 55 and 56: 20. DEBT SECURITIESGroup Society Gr
Page 57: 21. DERIVATIVES AND OTHER FINANCIAL
Page 61 and 62: 26. DEFERRED TAXDeferred tax assets
Page 63 and 64: 32. OTHER LIABILITIESGroup Society
Page 65 and 66: 38. FINANCIAL COMMITMENTSGroup Soci
Page 67 and 68: 40. FINANCIAL INSTRUMENTS (continue
Page 75 and 76: 41. RELATED PARTY TRANSACTIONSULTIM
Page 77 and 78: 42. NOTES TO THE CASH FLOW STATEMEN
Page 79 and 80: 2. OTHER PERCENTAGES2009 2008% %As
Page 81 and 82: 3. INFORMATION RELATING TO DIRECTOR
Page 84: www.thecoventry.co.ukCoventry Build
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