This is up from around £8.03bn the year before, and its balance sheet exceeds £11.3bn
According to its latest results, underlying profit came to £43.5m, which is slightly down from £54.4m in 2021.
Its statutory profit before tax came to £49.3m in 2022, a fall from £64m the year previously.
The mutual said that the “primary driver” for the reduction in profit was a £14.8m impairment charge during 2022, which compares to a £15.4m provision release during 2021.
An impairment charge is a cost that shows a fall in the carrying value of a specific asset on a balance sheet.
The outlook
The firm said that “ongoing economic uncertainty” had created “volatility within impairment provisions”, adding that the society would take a “prudent view of the economy over the next 18 months”.
Principality continued that it had supported almost 76,000 homeowners and lent mortgages to more than 4,500 first-time buyers.
The commercial team also helped fund the building of over 200 homes, and committed £19m to provide loans to housing associations for affordable homes across the country.
Julie-Ann Haines (pictured), chief executive at Principality, said: “Our members can be assured we have a strong balance sheet and capital to reinvest in the business for their benefit, to help us create better homes, help members to financially secure their futures through savings, as well as trying to create a fairer society by having a positive impact on our communities.
“With unfavourable economic conditions expected to last until at least 2024, our business remains resilient and able to endure these difficult times.”
She continued: “Now more than ever, we need to be courageous in our decision making. The challenges facing our members, communities and colleagues in the face of the cost of living crisis means we need to strive to achieve more. I am so excited about the opportunities that lay before us and how we can start to make an even bigger difference.”
Haines said that from taking over as CEO she could see an “urgent need to focus on being much more ambitious and clear about what Principality stands for, to help more people across the UK to own their own home and be more financially resilient”.
She continued that it was “clear” that the cost of living crisis has impacted members, colleagues and communities over the past year.
“To give our members, colleagues, and communities more certainty, we made a promise in 2022 to keep open our branches across Wales and England until at least 2025, so that we will retain a presence on the high street.
“It is what we were set up to do more than 160 years ago and our purpose to help people find a home and protect their savings is stronger than ever before in these difficult times.”
