The Nottingham Building Society has reported its gross mortgage lending fell by 22.5 per cent, however pre-tax profits have grown.
The half-year results, published today (31 July), revealed that in the first half of the year, the building society lent £268m compared to £346m in the same period in 2014.
However, it’s pre-tax profit grew from £8.9m in this period to £9.3m.
David Marlow, Nottingham’s chief executive, said: “Since 2010 the society has successfully grown its balance sheet by over 35 per cent, one of the highest growth levels in the sector.
“As we entered 2015, the board assessed the current market environment, which saw an increasing number of mortgage products priced below 2 per cent and decided not to continue with our sector leading growth levels.
“However in a clear demonstration of the effectiveness of our strategy, whilst we have not increased our own lending so far in 2015 and our balance sheet remains the same size as at the end of 2014, we have helped over 30 per cent more customers with mortgage advice and support, through our whole of market offering in 2015, than in the first half of 2014.”
Meanwhile, branch retail balances were up by 7 per cent to £1.6bn - an increase of more than 50 per cent since the beginning of 2013 - with four new branches opened in Ashbourne, Matlock, St Alban’s and Harpenden so far in 2015.
Mr Marlow stated that during the second half of the year the society will continue to develop and invest in its infrastructure.
“We know customers appreciate having local branches because it is reflected in rising savings balances and increased trading in our branches,” he said. “In fact since the beginning of 2013 we have increased the number of locations where we offer building society services by over 30 per cent with more to be planned in the months ahead.”
peter.walker@ft.com
