The lender’s underlying profit, which excludes the impact of the Financial Services Compensation Scheme, restructuring costs and fair value movements from hedge accounting, fell from £2.9m in 2008 to £0.6m in 2009.
Nottingham’s total assets also decreased from £3bn in 2008 to £2.6bn in 2009.
Total mortgage lending for the building society dropped from £429m in 2008 to £288m in 2009.
Nottingham Building Society chief executive Ian Rowling said: “The traditional goals of balance sheet and profit growth were simply not appropriate in 2009. Our focus has been on our existing customers, particularly savers, many of whom rely on their interest to supplement income.
“Our success here is reflected in the strengthening of our franchise in our regional heartland where our branch retail savings balances continued to grow despite the general turbulence and an industry trend of falling balances.”