Revealing its annual results, Wales’ largest building society confirmed that gross mortgage applications totalled £2bn – a new record for the lender. Net residential mortgage lending grew by over £600m, while in total Principality lent to more than 3,500 first-time buyers over the year.
As a result, Principality made pre-tax profits of £50.3m, up from £49m in 2015.
Last week Principality announced that Steve Hughes had been appointed as the mutual’s new chief executive officer, officially taking up the reins in March.
Outgoing chief executive Graeme Yorston, who will work through a handover period over the coming weeks with Hughes, said that Principality was delivering on its promise to help more people own their own home.
Yorston highlighted the performance of its commercial lending division, which had made pre-tax profits of £12.5m, noting that a significant portion of that lending went towards local housebuilders. In December, this arm of the business added three new managers, in an attempt to expand its activities.
Yorston concluded: “Principality is very well placed to be able to respond to all of the demands that will inevitably come its way, whether that be changes in economic conditions or in meeting the changing demands of consumers in the financial services marketplace. The business has a strong executive and leadership team who understand these demands and who also understand the value of the mutual model.”