Pre-tax profit was up by £3.8 million while gross mortgage lending increased by 18%
The Nottingham Building Society announced that it ended 2022 in a strong position, with increases in mortgage lending and pre-tax profit compared to the previous year.
Despite turbulent economic conditions, the mutual delivered a strong level of profit, with group pre-tax profit up £3.8 million to £18.9 million in 2022.
Gross mortgage lending also increased by 18% at over £659 million for 2022; resulting in total assets of £3.8 billion. Net interest margin was 1.69%, up 45 basis points from 1.24%.
The Nottingham noted that while this was aided by higher interest income and gains on derivatives, these were partially offset by increased investment and expenses in the new strategy, supporting colleagues in the cost-of-living crisis, and passing through some of the interest rate increases to its saver members.
“We have made it a key priority to support our members through these difficult times by paying savers the best rates we could while strengthening the society,” Sue Hayes (pictured), chief executive at Nottingham Building Society, commented on the results.
“Building the right team has also been very important. In 2022, we announced some significant hires to bolster our talented executive team. Alongside this, finding the right allies to support our ambitions was a focus. Our partnership with Generation Home, announced in November, is a great example of how we will think differently to help achieve our goals.”
The building society also increased its provision for expected losses on loans to customers, recognising the increasing risk of credit deteriorating in a recessionary environment. Its asset quality remained strong with arrears levels remaining low at 0.20% of loans three months or more in arrears and an average loan-to-value at the end of 2022 of 54%.
Throughout 2022, the mutual also delivered on its corporate and social responsibility program that saw 841 hours volunteered to community projects and charities by colleagues, in addition to monetary donations to the Samuel Fox Foundation. In relation to colleagues, The Nottingham has made two cost-of-living payments to support them through challenging times.
“I am proud of the results we are sharing today, and would like to thank our members, and each one of our dedicated colleagues, for their continued trust in the society,” Hayes said. “We look ahead to the coming years with a renewed sense of focus, guided by a clear and impactful purpose, with mutuality as our bedrock.”
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