"A stonking good set of results" was how chief executive Martin Ritchley described Coventry Building Society's interim figures yesterday.

The country's fifth largest mutual bucked the cooling housing market to achieve a 12 per cent growth in assets, which reached £10.5 billion at the end of June.

Gross lending reached a record of £1.631 billion, an increase of 44 per cent over the the £3.132 billion reported at the same stage last year.

Net lending, which takes redemptions into account, rose nearly fivefold to £944 million from £205 million.

Mortgage balances grew by

12.48 per cent in the period compared with a 2.7 per cent increase last time, while savings balances rose by £ 291 million against £112 million in the first half of

2004. Pretax profit rose by nine per cent to £25.6 million.

At the same time the Coventry showed its dedication to increasing the benefits to its one million-plus members.

The interest rate margin, the difference between the interest it charges borrowers and the reward to savers, improved to 0.92 per cent from

0.96 per cent, while the management expenses ratio reduced to 0.59 per cent from

0.62 per cent.

" Someone recently described his company's

figures as 'stonking' and I think I can say the same about ours," said Mr Ritchley.

"Despite the slowdown in the housing market, Coventry Building Society has enjoyed an outstanding six months in which we have substantially exceeded our natural market share for mortgages.

"Our strong results reflect the benefits which, as a building society, we are able to deliver to members."

Mr Ritchley said mortgage payment arrears currently had risen marginally during the period, but at 0.2 per cent of balances they were less than half the industry average.

Comparatively low interest rates and high employment levels were still producing a " benign" environment in which borrowers were still able to afford their repayments.

He went on: "The housing market has become subdued and it has been very difficult to come up with these results.

"The market is flattening out and there is a lot more realism on the part of sellers and buyers.

"But having said that, in some areas it is still very difficult to find a house at a reasonable price.

"And despite the innovative products we have introduced to help first-time buyers, many are still finding it difficult to get a foot on the ladder."

Mr Ritchley predicts that the housing market will continue to cool rather than crash.

A new suite of savings products aimed at families and pensioners has helped to produce record balances of £6.85 billion.

"In a highly competitive financial services market, our results are outstanding. They reflect the advantages of our building society status and provide further evidence of our ability to compete successfully and to deliver ongoing benefits to our members," he added.