Chief executive, Peter Griffiths, said that its success despite all of the market turmoil was reliant on Principality's traditional building society business model.
Group assets grew by £1,022.3 million in 2007, with its mortgage assets growing by 17.9 per cent to £4,584 million.
“Principality has been well placed to weather this storm with over 83 per cent of our mortgages funded by retail savings deposits from our members," said Griffiths.
"The strength of our balance sheet, coupled with the good quality of our mortgage assets, has meant we have been able to satisfy our relatively modest wholesale funding requirements.”
The society's chairman, David Williams, added: “We recognise that current uncertainty in the financial markets may cause concern for our members but we remain confident that our history, values, strategy and performance during 2007 allow us to safely say that members can continue to trust us with their financial affairs.
"Research tells us that Principality is one of the most trusted brands in Wales and we have no intention of compromising on that legacy."
