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.

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.

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"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