Ipswich Building Society unveil full year results
Ipswich Building Society has unveiled its financial results for the year ending 30 November 2019.
Total profit before tax was £1.9m, a decrease from the £3.3m reported in 2018.
The reduction in profit is related to the cost of funding the higher savings balances according to the society, together with significant investment in IT infrastructure and adverse fair value movements on derivatives.
Mortgage completions reached £115m in 2019 with a reduction in assets of £13m to £523m.
Mortgage completion levels increased in 2019 although there was a reduction in the size of the mortgage book due to a high number of planned, low margin redemptions.
Intermediary partners accounted for 90% of mortgage business and the society has embarked on a programme of widening availability through trusted networks and clubs.
Savings balance growth reached £31m, taking overall deposits to a record £603m.
Total regulatory capital was £35m, which is slightly lower than the £37m recorded in 2018.
Alan Harris, chairman of the Ipswich Building Society, said: “As well as undertaking the many activities very visible to members and the community, last year much time and effort has been invested behind the scenes in our governance and oversight as this, quite rightly, remains a key focus for our regulators.
“We continue to apply our Enterprise Risk Management Framework to give oversight and scrutiny of operations, finances and decision making.
“In short, this means taking business risks that are within appetite and ensuring they are effectively managed.
“We anticipate 2020 being another challenging environment for financial services.
“Activity in the housing sector is reduced and house price inflation is low, or in some areas, in decline, and we anticipate strong price competition in mortgages as well as savings in the near future.
“However our strength is in our simplicity and we remain focussed on delivering only for our members as a strong and committed mutual.”