‘The biggest period of change in Ecology’s history’: eco-friendly building society reports progress in first year under new CEO

Though profits for the Silsden-based building society fell slightly in the period following planned investments, the firm reported that it had retained more borrowers than the previous year.

Mr Griffiths said: “This will make us fit for the future so Ecology can continue to make a difference.

“Reporting results after my first full year as Chief Executive, we’re moving forward as a team so Ecology can continue to fulfil our mission to build a greener society and influence more positive change within our industry.

“Those fundamentals of who we are and why we do what we do remain unchanged, even as we make progress through the biggest period of transformation in Ecology’s history.

“Completing the upgrade of our infrastructure will give us the foundations for a successful and sustainable future for the society as a triple bottom line business for generations to come.

“And as we strive to improve our service to Members, I’m proud that last year we were able to pass on more rate increases to our savers than to our borrowers, as Bank Rates rose following a long time at historic lows.”

Our business newsletter will give you the inside track

Ecology delivered stable levels of lending during 2023, despite the challenging market conditions, with net lending of £65m. This was a fall from £69m in 2022. Total mortgage asset balances grew to £241m, up from £218m in 2022.

The Society also retained more borrowers at the end of their build periods, reducing mortgage redemptions from £35m in 2022 to £26m in 2023.

Lending in 2023 generated full year profits of £1.02m, down from £1.66m in 2022. The society said the reduction from 2022 was due to investments in the business. During the year, Ecology proceeded with significant, planned investment in skills, systems and technology, which it said was needed to support its ambitions for greater impact over the years to come.

The building society said that although this work is progressing on time and on budget, it means costs are likely to remain higher in the short term.

Mr Griffiths added: “As customer expectations evolve, we’re working to offer better digital functionality to our Members as part of efforts to improve our service overall.

“We need to keep attracting savings inflows to fund our impactful lending and know more savers are joining us because of our principles of sustainability and transparency.”

In line with the rest of its sector, Ecology also made extensive preparations for the introduction of Consumer Duty, which came into effect in summer 2023.

Ecology is also currently taking steps to become a net zero business. The firm said it will “continue to share what it has learned” to support members, colleagues and peers.

Mr Griffiths added: “I’m confident that our founding principles of how we seek to change society for the better have never been more relevant. Care for the environment and ethical business practices are gaining in importance with the public.”