Bath Building Society has announced that its annual results are at record levels, with an increase in their profits by 22.9% in 2013.
The Society’s assets rose by 0.95% to £272.5m, from £270m on the previous year. It showed an 11.5% increase in its reserves from £18.8m to £21m year on year, and pre-tax profits increased by 22.9% to £2.8m in 2013 (2012: £2.2m).
Market conditions have once again proved challenging, but the Society continues to weather the aftershocks of the recent financial crisis with exciting future prospects to look forward to.
It has continued to see the benefit of its specialist positioning in the mortgage and savings market which has allowed it to build its reserves through increased levels of profitability without increasing its risk profile.
Dick Jenkins, Chief Executive, said: “Our Mortgage book has grown by 8.7% in 2013 to a record level of £210m, with gross mortgage lending up by 25.1% to £38.6m (2012: £30.8m).
“This growth has largely been achieved with a focus on specialist segments of the market, such as first time buyers, and we have generated real interest through our innovative approach to lending to this group and our commitment to helping people in Bath and further afield to buy homes.
“There has been much talk in recent days about some of the challenges that lenders are facing to meet the new regulatory standards in the mortgage market. I am pleased to say that as a lender that has always been careful to ensure that our mortgages are affordable to our borrowers; we are taking these new regulations in our stride.
“We feel vindicated that the domination of the lending market by computers is finally being challenged and that there will be a return to common sense in assessment of mortgage applications.
“On the savings side, this era of ultra-low interest rates continues to prove problematic for savers. Whilst we can’t buck market conditions to give savers the rates they would ideally like, the fact that our assets have grown shows that our savings products remain competitive.
“Decent values and respect for our Members have been at the core of our business for generations and will remain so going forward.
“A very good run of results in recent years which has continued into 2013, suggests that this different approach is being appreciated by our Members”.