Number of first-time buyers assisted surges in 2023
Principality Building Society has reported a record performance for the fiscal year 2023, with significant growth in assets, profits, and customer balances amid economic challenges.
The mutual’s assets increased to £12.5 billion from £11.3 billion the previous year, with an underlying profit before tax of £60.3 million, up from £43.5 million in 2022.
Its retail mortgage balances grew to £9.3 billion in 2023 from £8.2 billion, and savings balances reached £9.1 billion, up from £8.1 billion. However, the capital ratio saw a decline to 21.8% from 26.5% of the previous year.
We're pleased to announce record annual results for 2023.
— Principality Building Society (@PrincipalityBS) February 21, 2024
You can read our annual results in full here 👉 https://t.co/hldteB3voR pic.twitter.com/EfMf1eK2Zg
Under the leadership of chief executive Julie-Ann Haines (pictured), Principality said it has made strides in assisting aspiring homeowners as the number of first-time buyers supported by the building society surged to 8,134 in 2023, from 4,587 in 2022, with the total homes owned by members increasing to 80,883 from 75,425.
Principality’s focus on customer service has also been recognised with an improved net promoter score of 83.9.
Financially, Principality said it has benefited from a higher Bank of England base rate, with a net interest margin increase to 1.52% in 2023.
“As a building society, we’re focused on helping more people to have a place to call home and creating a society of savers,” Haines said. “This year, we have helped more homeowners and savers than ever before. We are also proud to commit up to 3% of our profit to impact positively the wellbeing of the communities we serve.
“Looking ahead, I’m confident in Principality’s ability to navigate challenging political and economic conditions. While we anticipate ever-changing times ahead, our business is well-positioned to invest further and grow for the benefit of our members, colleagues and communities.
“We remain dedicated to supporting our members’ homeownership aspirations, providing competitive savings products and making a meaningful difference in the communities we serve. As we navigate the evolving landscape, we will continue to adapt and innovate to meet the changing needs of our members, while staying true to our core values and purpose.”
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