The Derbyshire achieved a record £770m in total gross mortgage lending – a 29% increase over the previous year’s gross advances. The Society committed over £47.5m to housing associations. During 2004 The Derbyshire’s subsidiary Derbyshire Home Loans Ltd continued to purchase mortgage assets from other lenders prudently (with £308m acquired in the year).
In the savings market, The Derbyshire’s retail savings balances grew by 15% to £2,502m, a record for the Society.
Total assets increased in 2004 to £4,407m producing a growth of 12.4%.
Against the backdrop of increasing regulatory costs, and whilst investing substantially in the business, the Group achieved a post tax profit of £10.5m; and a tight focus on costs allowed the Society to contain its management expenses ratio to a figure of 1.03%.
The Capital Markets continue to be a significant source of funding for the Society. An additional £144m was raised during the year with the Society establishing a Commercial Paper programme to further diversify its access to wholesale monies.
Peter Richardson, Chief Executive of Derbyshire Building Society, said: “We had a really strong year in 2004, with customers benefiting from a popular range of mortgage and savings accounts that featured strongly in national and regional press ‘best buy’ charts. Our performance shows we fought hard in our target markets with keenly priced products and a fast, efficient service.
“Our aim is to be the leading retail financial services provider in our heartland, delivering long-term value to more and more members – and we made considerable progress towards this goal in 2004. Central to our growth and profitability is the expansion of our specialist lending subsidiary, Derbyshire Home Loans Ltd (DHLL), which is a significant contributor to our business. We will continue to achieve substantial growth in non-traditional markets.
“The Derbyshire made a stand for fairness with a high profile TV advertising and marketing campaign which featured local heroine Dame Ellen MacArthur, the record-breaking yachtswoman. Our ‘How fair is that?’ brand invites customers to come to The Derbyshire and see how fair we really are.
“Looking ahead, we aim to take full advantage of our strong financial position to ensure continued significant growth and enhanced value for our members.”
