BEVERLEY Building Society achieved record growth last year, despite “challenging” conditions, writes Deputy Business Editor Greg Wright.
The society recorded a seven per cent rise in its mortgage book, up from £131m to £141m, and a £4.1m increase in savers’ deposits to £168.7m in the 12 months to December 2013.
Net profit grew for the fourth year in succession, up 23 per cent from £206,000 in 2012 to £254,000. General reserves rose “steadily” for the sixth year in a row to reach £8.8m, compared with £8.5m the year before. The performance produced an overall balance sheet growth of 1.03 per cent, increasing assets to £181.3m from £179.5m in 2012.
Beverley Building Society’s chief executive Peter Myers said the business had achieved success against the backdrop of challenging economic conditions by offering easily-understood financial products and focusing on customer service and community engagement.
Mr Myers described the market for mortgages as “extremely competitive”, with new organisations entering and Bank of England initiatives, such as the Funding for Lending Scheme (FLS) and Help to Buy, both reducing the cost of funds and increasing the supply. Although the society has chosen not to participate in these schemes, it has been affected by them.
Mr Myers added: “For borrowers, the news has been good, with more funds available at lower interest rates.
“However, for savers the situation has been less positive, with cheaper funds from the Bank of England meaning there was less demand for savers monies; as a result we are conscious that it has been necessary to reduce savers interest rates.”
Mr Myers’ current salary is £105,000, which is an increase of between three and five per cent on last year. The society provided 214 mortgages in 2013, compared with 131 the year before. It has around 13,000 members, which is an increase of roughly 300 on last year.