The Welsh mutual said the secured loan market continued to develop and expand away from its traditional base and for this reason it did not want to increase its participation in the sector.
Nemo recorded profits of £14m last year compared to £13.9m in 2014. Principality said the second charge lender’s balance sheet was ‘strong’ which reflected reduced impairment charges.
Graeme Yorston, group chief executive at Principality Building Society, said Nemo had defended its market share well in a highly competitive market.
“Nemo will continue to be a meaningful contributor to our group as a refocused business which will continue to provide excellent service to its customers,” said Yorston.
Principality’s gross mortgage lending rose by 20% from £1bn in 2014 to £1.2bn last year.
