Chief Executive Andrew Lewis announced an increase in pre-tax profit from £3.5m to £3.8m although stressed that due to its mutual roots it still pursued a policy of profit sufficiency as opposed to profit maximisation. The Newport-based Society’s net lending surged 143% to £62m while its members’ accounts grew by £77m, leading to a 15% increase in total assets which reached £607m in the year to April 30.
Its prudent strategy of maintaining a high quality loan book, being predominantly retail-funded and in particular the absence of any exposure to the sub-prime market, shielded the Monmouthshire Building Society from the effects of the credit crunch. Society Chairman Mr John Farrow said, “This was another year of outstanding success and progress for the Society. In particular, unlike financial institutions who were heavily dependant on wholesale funding for their mortgage lending, we have had the financial strength to maintain our quality lending.”
