TIDM10AI
RNS Number : 4461V
Principality Building Society
10 August 2022
Principality Building Society Interim Results Announcement for
the six months to 30 June 2022
Under embargo until 7am 10(th) August 2022
Principality Building Society will continue to invest profits to
support members, communities, and colleagues through the cost of
living crisis after it announced a strong first half performance of
2022.
Helping members, communities, and colleagues
Julie-Ann Haines, CEO at Principality Building Society said: "It
has been a challenging first half of the year with the cost of
living crisis, and the political upheaval both at home and abroad,
continuing to bite. I'm pleased to say that due to our strong first
half financial results, we have been able to focus our efforts on
supporting our colleagues, members, and communities, to try and
reduce their worries about the current challenges.
"As inflation has increased this year, we have worked hard to
balance the differing needs of our mortgage and savings customers,
passing on just a quarter of the Bank of England one per cent base
rate rises to our variable rate and discount mortgage members. Most
of our members who save with us have benefited from at least three
rate increases, ensuring we are offering competitive returns for
our savers as interest rates rise.
"Last month Principality colleagues received an extra GBP1,000
to help them with the increasing cost of living, as food, fuel and
energy prices increase significantly. As our headquarters in
Cardiff opened, we introduced an innovative, fully hybrid working
model which means colleagues can now work from around the UK or in
the office, whatever suits their circumstances best.
"To give our members, colleagues, and communities more
certainty, we also made a promise this year to keep open our
branches in all the towns and cities we currently operate in Wales
and England until at least 2025, so that we will retain a presence
on the high street."
Greater social impact for communities
Each year Principality plans to set aside up to three per cent
of its profit for projects with social purpose, and in the first
half of this year, Principality has invested around GBP500,000 into
projects such as GBP117,000 towards community grants across Wales
via its Future Generations Fund. Principality has now helped to
educate 18,000 school children and young people in the past six
months, whilst donating GBP100,000 to charity partners Ty Hafan and
Ty Gobaith Hope House children's hospices.
Earlier this year Principality donated GBP20,000 to the
Disasters Emergency Committee (DEC) for the conflict in Ukraine, as
well as offering up to five homes to accommodate and support
Ukrainian refugees who have been displaced.
The largest building society in Wales has also received carbon
neutral status and hopes to reach net zero in its operations by
2030. It received accolades for being a strong employer, ranking
ninth in the UK as a Great Place to Work(R) in the super large
business category, and number one in the UK as a Great Place to
Work(R) for women.
Strong performance
Underlying profit reached GBP26.1m (H1 2021: GBP28.6m), whilst
profit before tax was GBP31m (H1 2021: GBP33.1m). More than
GBP2.5bn in applications have been processed through Principality's
new mortgage platform. Since it was launched, mortgage applications
are being processed faster than before giving the business a great
platform for the future.
Julie-Ann said: "As a building society owned by our members, we
are not under pressure to meet the short- term needs of
shareholders. Our aim is to focus on the long-term and invest to
support the future growth of the Society and support our members.
Our financial performance was strong in the first six months, with
GBP99m net growth in our mortgage book as we helped almost 2,000
first-time buyers get a home. So members can be assured we have a
strong balance sheet and profitability to reinvest in the business
for their benefit, to help us create better homes for members, help
members to financially secure their futures, as well as trying to
create a fairer society for our communities."
KEY PERFORMANCE HIGHLIGHTS
-- Total assets of GBP10.5bn (31 December 2021: GBP10.9bn)
-- Retail mortgage balances of GBP8,132.6m (31 December 2021: GBP8,033.3m)
-- Savings balances have remained consistent at GBP7.9bn (31 December 2021: GBP7.9bn)
-- Net retail mortgage lending for the first six months of the
year of GBP99.3m (30 June 2020: GBP24.7m)
-- Statutory profit before tax of GBP31.0m (30 June 2021: profit of GBP33.1m)
-- Underlying profit before tax of GBP26.1m (30 June 2021: profit of GBP28.6m)
-- Strong capital with a Common Equity Tier 1 ratio of 30.79% (30 June 2021: 30.70%)
-- Net interest margin of 1.32% (30 June 2021: 1.14%)
-- On average Principality are paying savers 0.70% for savings
versus the market average of 0.29% over the last 12 months*
-- Net Promoter Score 80.9 (30 June 2021: 80.8)
*Source: CACI's CSDB, Stock, June 2021 to May 2022, latest data
available.
Ends
Notes to editors
About Principality Building Society
-- Formed in 1860, Principality is Wales's largest building society.
-- The Society is committed to supporting the communities of
Wales, with 53 branches and 17 agencies in Wales and the
borders.
-- Principality is the 6th largest building society in the UK.
-- The Society has assets of just under GBP10.5bn.
-- Principality is committed to remaining a mutual organisation.
-- www.principality.co.uk
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