Nottingham reports 3% mortgage lending growth

Nottingham reports 3% mortgage lending growth

Nottingham Building Society has reported a record increase in group pre-tax profit, up 15 per cent at £20m.

In its full year results released today (18 February), the lender said its record profit level was due to contributions from both its estate agency and mortgage advice subsidiaries.

However, the society said it expects its income to dip over the next three years as it looks to grow its balance sheet in a prudent manner, leading to lower levels of profitability than it achieved in recent record years.

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According to the results, the firm’s total net income slumped slightly to £58.6m in 2015, from £59.4m in 2014.

In 2015, the society saw 24,000 new customers and it opened five new branches, meaning it now has offices in 55 different locations.

It also saw 3 per cent growth in its gross mortgage lending, reaching £651m. This follows its half-year results which cited a 22.5 per cent fall in gross mortgage lending.

David Marlow, chief executive, said Nottingham BS has a strong commitment to building and developing its branch network.

“We believe firmly that the high street will continue to play a key role in our increasingly omni-channel world, where customers will expect to deal with us how they want, when they want to.

“In 2015 we have continued to work hard on these elements and have been delighted with the progress we have achieved.”

However, Mr Marlow said the society is expecting to operate in an uncertain and challenging environment over the next year or so.

In light of this, the society adjusted its financial plans in a bid to “remain vigilant and agile” to changes in market conditions, if current uncertainties remain.

Despite predicting a downward trend in income over coming years, it said it has continued focus on striking a “fair balance” between the needs of its savings and mortgage customers and forecast performance as it invests in its proposition.