Nottingham Building Society revenue and profits rise as new CEO Sue Hayes prepares to step in
The Nottingham Building Society said loan figures and profits were up as it prepared to hand over to a new chief executive.
The mutual, one of Britain’s 10 biggest, said its underlying net income was £49m in the last calendar year, down from £44.3m in the year former.
He said pre-tax profit in 2021 was £15.1million – with underlying pre-tax profit of £7.4million – compared to losses of £8.4million the last year.
Gross mortgages rose 13%, he said, to more than £550million, or total assets of £3.6billion.
Meanwhile, the company had “very low” arrears levels of 0.21%, a quarter of the industry average of 0.83%.
In total, it had branch savings balances of £2.5billion in 48 high street locations spanning nine counties.
Managing Director David Marlow is stepping down as Managing Director to be replaced by Sue Hayes.
Mr Marlow said: “Going into 2021, we had a number of key areas to focus our energies on – the ongoing Covid-19 pandemic; the significant economic uncertainty caused by a combination of the pandemic and Brexit; our intention to reinvent society for the emerging new world; continue to act as a responsible company by accepting our responsibilities to stakeholders, communities and the environment; and to continue to grow membership, while providing a level of financial performance that would sustain us for the future.
“Although the challenges of the pandemic remain, I am delighted to report good progress in the development and execution of our strategy, as well as a return to strong financial performance providing the platform for continued investments and growth.
“We enter 2022 financially strong and confident that the changes we are making to reinvent the Society are the right ones, ensuring we have a relevant and vibrant future.”
“I am immensely proud of what we have accomplished as a team over many years and it has been an honor and a privilege to serve our members during this time.
“Nottingham will always hold a special place in my heart, and I will continue to follow our continued progress with genuine interest and pride.
“My immense gratitude and respect goes to our colleagues and partners for their outstanding efforts during what has been another unique and challenging year.
“You have all been amazing. Finally, I would like to thank our members for continuing to trust us to help you save, plan and protect your future.
“I hope this will continue for many years to come.”
Mr Marlow said that in the face of intense competition, the company continued to help its members buy homes by expanding its mortgage offering.
Overall, new mortgage applications were up 22% on 2020 figures, supporting a 13% increase in net interest income to £45.9m, with underlying income up 11% to £49m.
Another key priority for the year was to launch the company’s first-ever app through its Beehive Money digital brand.