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Success in the mortgage market has led to record profits and increased turnover at Coventry Building Society. In the first half of 2011 its net mortgage lending was £846m – which it said is 25 per cent of the UK's total mortgage lending.

Its gross mortgage advances were more than £1.9bn, accounting for 3 per cent of all UK mortgage lending and 19 per cent of lending by mutuals.

Savings balances at Coventry rose by £7bn, funding the organic mortgage growth of £5.9bn. Pre-tax profit at the society was up to £45m from £43.5m.

David Stewart, chief executive, said: "Retail balances also increased to a new record level and the society's strong funding position was supported by a successful debut in the covered bond market, raising £750m from institutional investors.

"These excellent results demonstrate Coventry's consistent strength in what remains an uncertain environment."

Coventry also revealed that it has avoided some of the major banks' concerns. It has not been required to raise any provision as a result of the ruling on PPI as it did not sell premium PPI policies.

In addition, the bank has no exposure to struggling markets in Portugal, Italy, Greece and Spain, and has "negligible" £8.5m exposure to Ireland.

Coventry, which had been linked to a bid for public-owned bank Northern Rock, said: "The board will continue to examine additional opportunities that may benefit members, and recently Coventry's financial strength allowed us to consider if we should bid for Northern Rock.

"However, after careful consideration, the board concluded that to do so would not be in the interest of our members at this time."

The society also said it is confident of future growth and success despite the challenging economic environment.

In the last four years it has grown its total assets by £9.7bn (75.1 per cent), mortgage lending by £7.8bn and savings balances by £9.2bn.

"The economic environment, whilst continuing to bring new challenges, has been difficult for an extended period of time," said the society.

"During this time the society has achieved record results, has continued to lend, has increased savings balances significantly and remained strongly profitable.

"Our experience over the last four years gives me confidence that we have the right business model to succeed and that the current environment continues to present opportunities for the society to grow."