Market Harborough Building Society has announced strong results, despite the impact of the pandemic and staff having to work from home.
The Leicestershire-based mutual kept branches open last year, and completed more than £94 million of new mortgage business in 2020, slightly down on 2019.
Its mortgage book was up slightly and at the year-end at £427 million, and savings balances grew by £21 million in the year.
READ MORE: {}
According to its annual report, the society had assets of £531 million, reserves of £45 million and nearly 30,000 savings and mortgage members in the calendar year.
Despite the pandemic, it avoided furloughing staff, but society chairman Michael Thomas said the mutual was exploring long-term working arrangements for staff as people had become more used to working from home.
Mr Thomas said savers were given an extra £750,000 in interest last year, compared to 2019, despite Bank of England base rate falling to a record low. The society said it held off on cutting savings rates for as long as it could.
Savings balances increased, in part as withdrawals slowed mid-year due to lockdown, but also as a result of people opening new accounts.
Pre-tax profit for the year was £2.7 million which, after tax, increased the society’s capital to £45 million.
Most Read
Mr Thomas said: “The global pandemic meant that 2020 provided many new challenges for us all.
“Despite this, your society had a successful year with mortgage growth, significant savings inflow and good credit performance.
“We continued to serve our members by quickly reacting to changing circumstances and needs by modifying how and (with home working) from where we delivered our services.
“These adaptations will prove valuable in keeping the society relevant and resilient as a provider and an employer.”
Chief executive Mark Robinson said the society’s mortgage book increased in the year partly thanks to the Stamp Duty holiday, and house prices increasing “notably”, against expectations.
He said: “At the start of 2020 it was Brexit that was seen as the most significant external factor in our market places.
“That all changed early in the year with the pandemic and the issues that have dogged the economy for the last twelve months.
Don’t miss
“This is only now lifting with the prospect of widespread vaccination but it’s clear that many impacts are long term.
“The society in its 151st year is well capitalised and has again demonstrated its adaptability to change.
“This gives confidence in our capacity to cope well with any operational and financial challenges ahead. We remain focused on giving members great value, relevant service and products and will reinvest in our people and processes to deliver this.”