The Principality Building Society has reported a significant rise in its lending activities and saving deposits with total assets now exceeding £14bn. In its 2024 financial year the Cardiff headquartered mutual, which is the sixth biggest building society in the 海角视频, increased its retail lending on the previous by £1.2bn to £10.5bn.
Its saving deposits also grew £1.7bn to £10.8bn. Total assets rose from £12.5bn to £14.1bn.
In line with many financial institutions its net interest margin - the difference between interest received on its lending and what it pays out to savers - fell from 1.52% to 1.22%. With one of costs associated with its operating model - which saw 80 redundancies during the year - its under underlying pre-tax profit, as expected, fell from £60.3m in 2023 to £40.3m.
Reported profit before tax was £49.2m (2023: £60.3m) after recognising fair value gains in the year. The mutual, which is headquartered in Cardiff and employs 1.150, said it remains committed to its high street presence, through its 53 branches and 14 agencies across South Wales and the borders.
Its chief executive Julie-Ann Haines said: “At a time when economic uncertainty continues to challenge households across the country, we have remained steadfast in our purpose – to build a society of savers where everyone has a place to call home.
“We have seen record growth in both savings and mortgages this year (2024), helping more members to save and more customers to own their own home and are on track to meet our 2030 ambition statements we set out in 2022.”
She said access to affordable housing remains one of the most pressing challenges facing society.
The Scot added: “This year (2024), we’ve helped more than 8,120 first-time buyers take their first steps onto the property ladder, (8,130 in 2023). Overall, we now support 87,558 (80,883 in 2023) people to have their own home.
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“Our commercial division now supports the majority of housing associations in Wales, funding affordable housing across communities and developing meaningful partnerships. We provided £25m in long-term financing to Cardiff-based Hafod, enabling the construction of 300 affordable homes over the next five years. We also celebrated the completion of the final phase of the Mill in Cardiff, a decade long project, which delivered 800 homes -half of which offering discounted, intermediate, or social rent.”
Each year the mutual contribute up to 3% of pre-tax profit to causes that benefit communities.
On streamlining its operational model and committed to the high street, Ms Haines said:“Over the past year, we have taken significant and difficult steps to simplify our operating model, allowing us to better serve both our savings and mortgage customers, along with our commercial lending clients, while streamlining costs to create the capacity for purposeful growth.
As a modern mutual, we are led by our members, who have told us that they value both our strong presence on the high street and the convenience of enhanced digital services. That is why I am pleased to continue our commitment to a long-term presence on our high streets and communities that underpin member experience.”
On the outlook the chief executive said: “As we look to 2025 and beyond, the Society continues to be equipped to navigate the challenging economic and political landscape that we operate in.
“A lower base rate horizon and lower inflation could suggest a more positive outlook for 海角视频 consumers and the economy, albeit there remains concern around the cost of living for the most vulnerable within our communities.
I am confident the society will continue to adapt and invest for the long term, with our purpose remaining at the heart of everything we do. Whether it’s helping more people into homes or building financial resilience for life’s uncertainties, we remain committed to support our members, colleagues and communities for another 165 years.”