Landmarks reached by building society in 2017
SWANSEA Building Society reached several landmarks in 2017. It made its highest ever pre-tax profit, highest level of total assets and reached a new high in its mortgage balances in 2017 – an achievement it attributed to its face-to-face business model and expanding network of branches.
The Society made a pre-tax profit of £2.86m in 2017, an increase of 11.7% compared with the same period the year before when it posted a profit of £2.56m.
The performance was based on total net income of £6.4m, a 12.9% increase on 2016. Its profit after tax was £2.3m, also an increase of 11.7%.
The Building Society’s total assets were £275.4m in 2017, − the highest level of total assets ever recorded by the Society − showing an increase of £6.8m or 2.5% on its total assets of £268.6m a year earlier.
Its gross mortgage lending increased to £46m in 2017 from £44m in 2016 and mortgage balances increased to £201.3m, an increase of 8.8 percent from £185m in 2016, which are both two new records for the Society.
Swansea Building Society has expanded its network in recent years.
It now has branches in Swansea, Mumbles and Carmarthen, the latter opening in late 2015. Late last year it also launched a fourth branch in Cowbridge.
Alun Williams, chief executive of Swansea Building Society, said he felt the strong performance was testament to its business model and the fact that other banks and building societies are abandoning a personal service and their customers in rural areas and small towns.
This provides Swansea Building Society with the opportunity to continue to gradually expand its services to benefit new and existing members.
Mr Williams said: “2017 produced a number of record breaking figures for the Society and we head into 2018 with confidence. The success is testament to our business model, which is based on providing an individual service to our customers and understanding the needs of the communities we serve.
“The Society has opened its fourth branch, complementing our Head Office branch in Swansea which was established in 1923, our Mumbles branch which opened in 2010 and our Carmarthen branch which opened in 2015. The new branch in Cowbridge will become the regional hub for the Society in South East Wales and we look forward to it making a very positive contribution to the Society in 2018.
“In 2017 we achieved gross mortgage lending of £46m, which set a new record for the Society. In the second half of 2017 we appointed two further mortgage managers, which should improve our gross mortgage lending in 2018.
“We continue to provide our borrowers with a flexible face-to-face service at a time when most banks and building societies do not have full time branch-based qualified mortgage advisors who know and understand the local community that they are serving.
“We intend to continue to build on this area of our business model in 2018.”
Swansea Building Society’s balance sheet is totally funded by retail and business savings and retained profits, meaning it has no reliance on the wholesale money markets to fund either asset growth or mortgage lending.
The Building Society will hold its annual general meeting at Swansea’s Liberty Stadium tomorrow.