Building society CEOs do recognise, however, that there are a number of challenges to face before things start to look up. The low interest rate environment makes it difficult to manage the needs of both savers and borrowers, and maintain profit levels; there is high competition for deposits, especially from nationalised and part-nationalised banks looking to increase their residential lending; levels of arrears and possessions are increasing and house prices continue to fall.
One thing the majority of CEOs agree on is that the FSCS levy will have a considerable impact on their business - and therefore their members. 60% believe mortgage rates may have to rise, with 53% thinking savings rates might have to fall in order for societies to meet the costs of the FSCS levy.
Commenting on the survey, Adrian Coles, Director-General of the BSA, said: "The last 12 months have certainly been tumultuous, but it's encouraging to see that the majority of building societies have a positive outlook. Despite challenges faced by building societies, their CEOs feel they are in a strong position to overcome them.
"The next year is not seen as a period of growth, but a time when balance sheets can be strengthened, and the business primed to take advantage when market conditions become more favourable."
Other key findings of the report include:
The average forecast house price change over 2009 is minus 10%; the average for 2010 is minus 0.8%.
Society CEOs forecast net lending to fall on average 22% in 2009, but advances are forecast to recover by the end of 2010 with an 8% increase year on year.
Net receipts are forecast to fall by an average of 9% in 2009, but to recover in 2010 with an 8% increase.
Most CEOs believe the Bank of England base rate will remain at 0.5% until the end of 2009.
