Ecology benefits from the financial 'flight to safety'

Paul Ellis, the building society's chief executive, said there had been a "flight to safety and transparency" since the banking crisis of late 2008.

He added: "I am delighted to announce such a strong set of results to our members again this year, especially in the face of such a challenging operating environment."

Ecology, which is based in Silsden, West Yorkshire, provides lending for homes that have been designed to limit waste and save energy. It also lends to support renovations, conversions and energy efficient improvements.

Net profit for the year ended December 31, 2009 rose to 344,000 compared to 319,000 the year before.

Mortgage assets grew by 9.1 per cent to 62m and savings balances increased by 8.54 per cent to 87.2m. The pre-tax profit for 2009 was 464,000, an increase on the 418,000 recorded the year before.

Mr Ellis said: "It is particularly pleasing that the quality of our lending remains of a very high standard. Energy efficiency is very much to the fore.

"The fallout from the financial crisis is undoubtedly continuing to influence many when choosing where to place their savings and examine what use they are put to, and this is proving to the benefit of ethical and mutual financial providers like us.

"Looking ahead, we are committed to expanding our services to members, including developing our internet offering and enhancing our mortgage range to incentivise more UK homeowners to reduce their carbon footprint, and benefit from a financial model that puts people and the planet first.

"We will continue to develop our policies in light of the scientific consensus that man-made climate change needs to be tackled urgently, despite the recent attempts to obscure the issue."

It was also announced yesterday that the UK's third biggest building society plans to merge with a smaller rival.

Coventry Building Society has agreed a deal with the Stroud & Swindon Building Society, the UK's 11th largest mutual.

The merger will create a combined group with around 1.5m members and assets of around 21.1bn

The enlarged business will have a combined network of 91 branches and agencies across the Midlands and South West.