News release
Principality
Building Society's strategy is delivering, with record results
having a positive impact on its members and
communities
Principality Building Society has announced a
record-breaking performance for the year ending December 31,
2023. Against a backdrop of economic turbulence, the
Society made demonstrable progress towards its strategic vision of
helping more first-time buyers than ever before; growing its
mortgage book to record levels and assisting more customers to
start a savings habit.
Julie-Ann Haines, Principality Building
Society's Chief Executive Officer,
emphasised the
Society's core purpose: "As a building
society, we're focused on
helping more people to have a place
to call home and create a society of savers, and this
year we have helped more homeowners and savers than ever
before. We are also proud to commit up to 3% of our
profit to impact positively the wellbeing
of the communities we serve."
Better homes,
secure futures, fairer society
Julie-Ann continued: "The effects of a volatile
economy, with inflation and interest rates remaining higher than we
have seen in recent times, have impacted our members' personal
finances. This has limited the aspirations of those saving for the
future and has made it harder for people to get on the housing
ladder. In 2023 our strong set of results assisted a
record number of first-time buyers, increasing to 8,134 in 2023
from 4,587 in 2022 and we increased the number of homes owned by
members to 80,883, up from 75,425 in 2022. We've
helped more people to save regularly and have continually offered
savings rates that are above market average at 2.94% versus the
average on the high street1 of 2.31%. We've also
focused on shortening the time it takes us to pass on interest rate
rises, reducing from 30 days to 15, so customers benefit more
quickly."
Principality continues to put members at the
heart of its strategy, increasing investment to ensure that it
provides an industry-leading service. As a result, its
award-winning Net Promoter Score (NPS) has further improved in 2023
to 83.9 and it was voted Best Building Society for Customer Service
by 'What Mortgage' for the sixth consecutive year.
Community
Commitment
Principality's unwavering dedication to its
customers is further embodied by its continued investment in local
communities. While other banks and building societies have
retreated from the high street, Principality maintains a robust
presence, with 53 branches and 15 agencies across Wales and the
Welsh borders, and it has reaffirmed its commitment to
operating at the heart of local communities until at least the end
of 2025.
Principality invested £1.3m in impact work
through its Future Generations Fund, increasing its support
for youth and community groups, extending
partnerships with charitable
organisations, and making significant
strides toward achieving its carbon
net-zero operations by 2040, reducing its carbon footprint by 2,700
tonnes CO2e.
Performance Highlights
Net interest margin rose to 1.52% in 2023 (2022
figure: 1.39%) driven by the higher Bank of England base rate. As a
result, Principality reported an underlying profit before
tax of £60.3m in 2023, up from £43.5m in 2022. Principality grew
its retail mortgage book by £1.1bn to £9.3bn (2022 figure: £8.2bn)
demonstrating a step-change towards its ambitious growth plans. The
business is benefitting from investment made in previous years
across its mortgage platforms, to continue to build resilience and
adaptability amidst economic uncertainty.
Savings balances rose by £1.0bn in 2023 to £9.1bn
(2022 figure: £8.1bn). The Commercial lending loan book also rose
by £49m to a total of £811m as a result of its landmark deal with
Pobl Group2 and Principality also supported more Housing
Associations and Commercial clients through a challenging
period.
Julie-Ann Haines concluded: "Looking ahead, I'm
confident in Principality's ability to navigate challenging
political and economic conditions. While we anticipate
ever-changing times ahead, our business is well-positioned to
invest further and grow for the benefit of our members, colleagues
and communities. We remain dedicated to supporting our
members' home ownership aspirations, providing competitive savings
products and making a meaningful difference in the communities we
serve. As we navigate the evolving landscape, we will continue to
adapt and innovate to meet the changing needs of our members, while
staying true to our core values and purpose."
Principality Building Society's year-end results
attest to its security, stability, resilience, and unwavering
commitment to its members and communities, positioning the Society
for continued success in the years to come.
ENDS
Key
Points
· Total
assets: £12.5bn (2022: £11.3bn)
·
Underlying profit before tax: £60.3m (2022: £43.5m)
· Retail
mortgage balances £9.3bn (2022: £8.2bn)
· Savings
balances: £9.1bn (2022: £8.1bn)
· Capital
(CET1 ratio): 21.8% (2022: 26.5%)
· Net
Promoter Score: 83.9 (2022: 81.6)
Notes to
Editors
·
Formed in 1860, Principality is Wales's largest building
society.
· The
Society is committed to supporting the communities of Wales, with
53 branches and 15 agencies in Wales and the borders.
·
Principality is the 6th largest building society in the
UK.
·
Principality is committed to remaining a mutual
organisation.
Notes
1 CACI's CSDB, Stock, Weighted Average Interest Rate for
December 2022 - November 2023
2 For more information, please visit
https://media.news.principality.co.uk/news/principality-commercial-announce-a-landmark-gbp-50m-loan-for-pobl