Cheery full-year results from expanding Nottingham Building Society

An upbeat full-year results announcement saw Nottingham Building Society report an 18 per cent rise in pre-tax profits.

An upbeat full-year results announcement saw Nottingham Building Society report an 18 per cent rise in pre-tax profits.

In the year to December 31st, profits came in at £8.5m, as the building society increased its mortgage lending by 28%, to £559m. Arrears were maintained slightly below industry averages, at 0.64%.

Chief Executive Officer David Marlow pointed to a 10% growth in the group's balance sheet, boosted by a 14% uptick in retail savings deposits. Careful cost management resulted in an improvement in the cost income ratio, to 64.7%, compared to over 90% three years ago.

"The society is well positioned to move forward, despite continued uncertainty in the economy, supported by its strong capital position and robust financial performance," said Marlow.

"Our plans for the year ahead are focused on extending the reach of the society beyond its current locations and continuing to develop and improve the products and services that we offer to members."

Nottingham Building Society has proposed a merger with the Shepshed Building Society, with members voting on the matter in April. This follows the acquisition of estate agent Harrison Murray in early 2013, which provides new high street locations to which building society services can be added, especially in Leicestershire.

Net interest margins remained stable at 1.17%, while the company's mortgage book is fully matched by retail funds. Consequently, Nottingham Building Society has reduced its non-retail ratio to 10.1%, compared to 16.7% in 2010.

JF

Recommended

The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
5 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Council tax increases 2023 – how much more will you pay?
Tax

Council tax increases 2023 – how much more will you pay?

Your council tax bill will go up in April - we reveal the councils that have confirmed what this year’s increase will be.
23 Jan 2023
Will energy prices go down in 2023?
Personal finance

Will energy prices go down in 2023?

Wholesale gas prices are on a downward trajectory, but does this mean lower energy bills later this year?
27 Jan 2023
When will interest rates go up?
UK Economy

When will interest rates go up?

New interest rates will be announced on 2 February – we look at what to expect.
26 Jan 2023