Balances and new lending hit record levels in 2022
Leek Building Society has delivered a strong performance in 2022, doubling profits and hitting record levels of balances, new lending, savings balances, and capital.
Andrew Healy (pictured), chief executive at Leek Building Society, said: “In 2022, we delivered robust financial results, excellent risk management standards, and high customer and staff satisfaction while offering competitive interest rates and investing for the long-term benefit of our members.
“In addition, we supported the local community more than at any time in our history, which was especially important given the cost-of-living crisis.”
The mutual reported that its underlying pre-tax profit doubled from £2.5 million in 2021 to £5 million last year despite record investment in new technology, branches, and the local community.
Mortgage balances reached a new high of £888 million (from £869 million in 2021), while new mortgage lending in the year was a record £186 million, one third of which helped first-time buyers get onto the property ladder.
The society also supported mortgage borrowers on variable rates by only passing on approximately half of the increase in base rate during the year despite eight Bank of England rate hikes in 2022.
Leek’s 2022 annual report also showed growth in total assets from £1.18 billion in the previous year to £1.24 billion, with savings balances hitting the £1 billion mark for the first time.
The building society’s mortgage offering includes lending on new build properties and flats up to 95% loan-to-value (LTV) for residential mortgages and up to 75% LTV for buy-to-let mortgages. Responding to feedback from brokers, the lender recently entered both the limited company BTL and holiday let markets.
Leek said that while all mortgages were individually reviewed and underwritten by its credit team, it also recognised the increasing importance of technology to the mortgage process, recently signing a contract with Iress MSO to streamline the mortgage process for brokers and customers.
According to the mutual, member satisfaction at 98% was a record high in 2022, as was staff satisfaction at 97%. The society’s newly established charitable foundation also saw it support the local community more than ever with over £100,000.
Healy added: “I am particularly proud of our people. We are well recognised as a great place to work with a team of first-class staff who really care about our members, the community and one another. This wonderful people platform is central to everything we do.”
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