After 10 years at the helm of the mutual, Griffiths posted recent annual results revealing a healthy performance in 2011 underpinned by robust capital and liquidity ratios, increased reserves and a strong profit to continue to provide members with the level of safety and security that they expect.
Appointed in 2002, he continued to make significant investment into the business to build capability and diversify the mutual model for the benefit of members.
Today the society is the seventh largest building society in the UK and has cemented its position as the most recommended of the banks and building societies on the Welsh high street.
Griffiths confirmed that Principality is in good shape and he feels now is an appropriate time to hand over the reins.
He said: "After more than a decade it is with a mix of emotions that I have made the decision to stand down from my current role. It has been a fascinating experience, initially a mix of modernizing and then growing the business and finally steering our way through the depths of one of the most testing financial times on record.
The society has emerged in great shape and I leave behind a strong and experienced management team, a trusted brand and a future filled with opportunities. My thanks go to all who have supported me over the last decade including past and current chairmen, my board, a loyal and dedicated team and a supportive set of members."
Dyfrig John, chairman of Principality, added: "Peter has done a tremendous job of keeping the society safe and secure.
"His commitment to mutuality has ensured that members have remained at the heart of this business. It is with great regret that we accept his resignation.
"His leadership skills, strategic awareness and common sense approach to business have been invaluable over the last decade.
"Peter will be a hard act to follow but we will continue to benefit from the very strong team which he has established and fostered. His contribution is much valued and we wish him everything he would wish for himself in the future."
The Principality board has commenced a search for a successor. The process of selection, looking at both internal and external candidates has already begun. Griffiths will remain in situ until a suitable candidate is found.
Griffiths added: "I have no firm plans as to what or where next. I am a firm believer in serendipity and fate and I will explore my options in the months ahead."
