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Principality lending reaches £1.9bn

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  • 07/02/2018
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Principality lending reaches £1.9bn
Principality Building Society grew its gross mortgage lending to £1.9bn in 2017, up from £1.5bn in 2016.

 

This was based on gross mortgage applications reaching £2.5bn for the first time in the building society’s history – up from £2bn the previous year.

The mutual added that it had helped more than 5,000 first-time buyers get on the property ladder, while net mortgage lending was up by £917m, taking total assets to £9.3bn, from £8.3bn in 2016.

The lender declared pre-tax profits of £57.6m compared to £50.3m in 2016, with full profits after tax totalling £43.5m, against £39.1m in the previous year.

Savings balances also jumped by £399m from £6.1bn in 2016 to more than £6.5bn.

During the last year Principality introduced a broker retention proc fee of 0.2% and rolled-out an in-branch video mortgage advice service.

 

Strong mortgage growth

Steve Hughes (pictured), chief executive at Principality Building Society, commented: “We have built financial resilience through our strong residential mortgage growth and robust profitability.”

“I am especially pleased that in the past year our net residential mortgage lending increased by £917m,” he continued.

“Growing the residential mortgage business is important and benefits our members through building a sustainable business.”

Hughes also mentioned the commercial arm of Principality, which contributed a pre-tax profit of £17.9m.

 

Technology focus

Hughes also said that the positive performance will enable investments in digital technology.

“Our strong performance means we can invest in our technology, our branches and our people to meet the changing demands of our consumers,” he said.

Looking ahead into the year, Hughes said Principality was “well placed” to weather any economic headwinds or Brexit uncertainties, as well as to invest for “long term sustainability”.

Hughes commented: “We are well placed to continue to grow and invest in the business to improve our member proposition.

“Principality’s balance sheet is strong, and we are confident in our ability to withstand economic headwinds.”

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