Principality Building Society has delivered a strong set of annual results, announcing that net retail mortgage lending has grown by £718m.
Steve Hughes, Chief Executive at Principality Building Society, had this to say: “We have made great progress in delivering on our business growth strategy, despite increasing economic and political uncertainty, as well as a very competitive mortgage and savings environment which has caused downward pressure on margins. I’m very proud that we have been able to help over 6,400 first time buyers make their first steps on to the property ladder in the past year, helping people to prosper. People see the value in our products and that as a member-owned building society we are here to help them to secure the home they want.
We have grown our lending by more than £700m and are reaping the benefits of our focused mortgage strategy which has built strong relationships with brokers across the UK and seen investment in our direct to consumer mortgage offering. In order to support the growth in our lending, we have attracted an additional £426m in savings. We have maintained our position as one of the best savings providers on the High Street.
Our Commercial team have once again performed well, bringing in new lending worth £124m, and together with Nemo our second charge loans business, has again made a meaningful contribution. I am especially proud that the work we have done in Principality Commercial is benefitting communities where affordable housing is needed, such as their work at The Mill in Cardiff, and through our social housing lending. Our lending has supported some great initiatives in the residential, office and industrial sectors.
As a mutual, member-owned building society, our aim is not to maximise profit but to focus on the long-term future of the Society by ensuring we invest in the business whilst offering competitive rates to our savers and borrowers. Our profitability remains solid and we will continue to ensure we add to capital to protect our Members’ interests."
Looking ahead to 2019, Steve added: “There will continue to be significant political and economic uncertainty and we expect price competition in the mortgage market to remain fierce and for our margins to be squeezed further. Our profitability will continue to be robust but will be progressively lower in the next few years as we reshape and invest in our business for the long-term. We will continue our single minded focus on transforming our core mortgage and savings business. Our Society has resilience through its strong capital and liquidity base to deal with any headwinds that might emerge and ensure we protect our Members’ interests. Our performance in recent years in terms of growth and profitability have built a solid foundation to allow us to invest for the future. We will seek to grow our business in a safe and sustainable way for our Members and to make sure we are in a strong position for future generations.”