It achieved sustained growth in its mortgage book and profits
Suffolk Building Society has reported strong financial results for 2022, achieving sustained growth in its mortgage book, savings balances, and profits.
For the year ending on November 30, 2022, the mutual’s total profit before tax was £5.9 million, more than double the £2.9 million pre-tax profit of the previous year.
Mortgage completion was down to £165 million from the £168 million in 2021, but Suffolk recorded a mortgage book growth of 7% to £655 million, from £615 million the year prior. This was largely due to high demand earlier in the year, particularly for remortgages, as interest rates rose, and homeowners and buyers looked to lock in fixed rate mortgages.
During its 2022 financial year – its first full year as Suffolk Building Society, the mutual processed 1,251 applications, resulting in 670 completions for the year with an average loan size of £244,000.
Suffolk said growth was also due to its focus on targeting niche mortgage markets and on its intermediary relationships. It also benefitted from interest rate swaps, used to smooth out interest rate exposure on fixed rate products.
During the year, the mutual also expanded its mortgage proposition with expat holiday let borrowing and self-build large loans of £1 million to £2 million, and increased maximum loan sizes to £1 million up to 80% loan-to-value. Suffolk also re-entered the shared ownership market with both fixed and discount products.
“I am very encouraged to be able to say that we have ended the year in a very strong financial position, during a year of much uncertainty,” Peter Elcock (pictured), chairman at Suffolk Building Society, commented. “Crucially, this means we can continue to reinvest into the society, support our members, staff and the local community through the cost-of-living crisis, and continue to deliver award-winning service.
“Of course, none of this would be possible without the unwavering commitment to service and innovation of our staff, to whom I am hugely grateful.”
Elcock added that Suffolk saw strong mortgage performance in another year of global uncertainty and political volatility, during which their offering was carefully managed to prioritise positive and consistent service levels and excellent customer outcomes.
“2022 was, of course, a difficult year for many, financially, and our borrowers on variable rate mortgages, or those coming to the end of their fixed term, faced rising interest rates after a period of historically low rates,” he said. “As far as possible, we have tried to support our borrowing members, while balancing their needs with those of our investing members.”
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