Principality achieves minor lending increase in H1 2017

Ryan Bembridge

August 2, 2017

Principality Building Society increased its gross mortgage lending to £814.8m in the first half of 2017 from £802.4m in the corresponding period a year ago.

In the process the society upped pre-tax profits to £31.8m in H1 2017 from £23.9m in H1 2016.

Steve Hughes (pictured), chief executive of Principality, said: “It’s been a great start to the year for the society, with a really strong lending performance. Our capital and liquidity remains strong and our low arrears levels reflect the prudent nature of our balance sheet.

Tom Denman appointed CFO at Principality

“We are a mutual organisation, owned by our members and we will continue to run the business for the long-term benefit of our members.

“To achieve this we will implement our strategy with appropriate prudency, focus and rigour.

“Our strategy is ambitious with a clear focus on transforming our core mortgage and savings business.

“Growing the residential mortgage business is important and benefits our members through building a sustainable business and providing the scale to allow us to invest for the future.”

Principality increased its net mortgage balances to £6.22bn in the first half of 2017 from £5.86bn in the second half of 2016.

Hughes added: “Our outlook for the second half of the year looks robust. However, headline profitability will fall in the coming years as we consciously invest in the business to improve further the propositions and service we provide for members and customers.

“This will involve significant investment in technology, processes, and our colleagues and in developing our branch network to meet the changing demands of our members.

“Political and economic uncertainty has undoubtedly affected the financial landscape but the Principality balance sheet is strong and is well positioned to deal with any impacts this might have.

“We will continue to provide a stand out experience for our members and customers whilst investing in our business for the long term.”

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