Profits at Coventry Building Society increased to nearly £500 million last year, the bank has said.

According to a company statement, CBS recorded a pre-tax profit of £464 million last year, up from £371 million in 2022.

That at the same time as the firm - which has branches in Kenilworth and Warwick - increased the premium it paid members by 49 per cent.

In 2023 the building socierty offered on average 0.81 per cent above the market rate, with payouts rising from £230 million to £342 million.

CBS says the "strong profit growth" has allowed it to invest in its digital services.

Commenting on the results, Steve Hughes, chief executive said: "The impact of persistent inflation resulting in further base rate increases, created volatility in markets and a fast-moving situation for savers and borrowers alike. In this context we delivered a strong financial performance and growth ahead of market. 

"We concentrated on great value products, outstanding service, and putting the right foundations in place to support our future success by strengthening capital and investing in our digital capability. 

"We proactively supported borrowers and improved our savings rates relative to the market whilst investing in our communities. 

"These are important proof points of our mutual model – value, service, resilience and making a difference in our communities – all delivered by our brilliant and highly engaged colleagues. 

"I'm proud of what's been achieved as we continue to strengthen the society for the benefit of current and future members."

Other headlines include mortgage balances growing by £2.3 billion to £50.3 billion, and savings jumping up 12.5 per cent to £5.3 billion.

"With regards to The Co-operative Bank exclusivity agreement announced in December 2023, the society is continuing to conduct thorough and detailed due diligence and will only pursue this transaction if we believe it is in the best interest of current and future members," the statement added.

Sky News has reported today CBS has called in JP Morgan to help secure the proposed takeover of the Co-operative Bank.