Principality lending hits £1bn but profits fall

Principality Building Society lent £1bn to mortgage customers in 2011, up by 6.5 per cent on £934m in 2010, although profits fell sharply.

In its annual results for 2011, published last week, the society says profits fell by 20.5 per cent from £30.8m to £24.5m.

Its core tier-one capital ratio increased from 13.3 per cent to 13.5 per cent. The society added 38,000 new customers, including 29,000 new savers.

Group chief executive Peter Griffiths says: “We will continue to work with all our stakeholders to create further innovative solutions to meet Wales’ housing needs, focusing on putting building back into building society in 2012 and beyond.”

London & Country associate director of communications David Hollingworth says: “I am a big fan of the Principality, I think it is an open-minded lender with good products and sensible underwriting, so it does not surprise me that its lending figures have increased.”

Loughborough Building Society also reported a 7 per cent increase in mortgage lending from £24.5m to £26.3m. Profits increased by 13 per cent from £661,000 to £751,000.