Buckinghamshire Building Society posted full-year pre-tax profit that fell 16.7% to £1.5m, while home loans lending lifted by a fifth, in what was “a challenging year for the UK economy”.
The mutual says its gross mortgage lending lifted 21% to £79m compared to a year ago, with loans spread across first-time buyers, self-build, shared ownership, retirement lending, those with non-standard income or minor adverse credit histories and buy-to-let investors.
Its mortgage book is made up of 84% residential owner-occupied mortgages, 15% BTL mortgages and 1% commercial lending.
The firm says its fall in profit “is in line with the agreed strategy” of balancing “sufficient profits to maintain our financial strength and operational resilience, while also delivering value to our members by providing competitive mortgages and savings products”.
Its net interest margin – the difference between what it pays to savers and what it charges to borrowers — rose to 2.04% from 1.94% a year ago.
Buckinghamshire Building Society chief executive Dan Wass, who joined the business in September, says in its annual report: “There’s no doubt that market conditions were challenging in 2022, but we have always aimed to recognise the value of member’s savings, remain competitive for homeowners and at the same time ensure reasonable returns for the society’s long-term sustainability.
“We continue to identify areas where our unique skills/services can support the more specialist lending needs.
“We are currently preparing to expand our product offerings in areas where we feel we have real strength and capabilities.
“We also would like to make it easier to meet the lending needs of new and existing members directly, by launching our direct advice mortgage service and enhancing our member onboarding experiences.
“We intend to say more to you about this in the coming year.”
Total savings balances lifted 15% to £293.5m.
