Ipswich Building Society has announced its financial results for the year ending 30th November 2017, a period marked by strong mortgage growth, low risk lending and further investment in its retail branch network. The Society continues to support mutual status and remains focused on the long-term sustainability of its business.
Key numbers:
– Total profit (before tax) of £3.1m (2016: £2.6m)
– Gross mortgage lending of £159m (2016: £120m) and net lending £44m (2016: £23m) to a total £521m mortgage assets
– Savings balance growth of £26m to £567m (2016: £541m)
– Total regulatory capital £34m (2016: £32m)
The Society’s diligent approach to lending has protected members and the Society by keeping arrears and repossessions at a low level in 2017. A personalised approach to underwriting has continued to support those who may be cast aside as ‘mortgage misfits’ by other lenders, including the self-employed, older borrowers, self-builders, first-time buyers, and zero-hour contract workers. At a time when Suffolk has seen announcements for 22 bank and building society branch closures , the Society has restated its commitment to physical banking, with the opening of a new flagship branch, Mutual House, in Ipswich, and relocation of an existing branch to new premises in Woodbridge.
A number of changes to the Board took place throughout the year, including the arrival of Non-Executive Director Steve Liddell, the retirement of Derek Bowden at the Society’s AGM in March 2017 and the retirement of Sarah Evans, Chair, who completed her maximum nine-year term. Alan Harris, who has been a member of the Board since 2011, was appointed as the new Chairman and replaced Sarah in December 2017.
Alan Harris, Chairman, Ipswich Building Society, comments on the results:
“Against a backdrop of change in the UK’s financial sector we maintained a strong and consistent level of performance in 2017. Our model remains simple – to provide a safe home for savers and to use these funds to provide low risk mortgages to UK borrowers – and we are pleased to reaffirm our commitment to our branch network which is enabling this to happen with a high level of personal service.”
Additional highlights:
– A 17% increase in the number of mortgage applications processed by the Society from 2016.
– Over 1,000 volunteering hours by the Society’s employees were spent helping the local community; 705 hours were spent delivering its bespoke financial education programmes in schools, colleges and prisons, reaching 4,791 students with key life skills.
– Branch customer satisfaction score of 98%, in line with 2016, with an increased Net Promoter Score (NPS) of +84, compared to +83 in 2016.
– The Society supported the inaugural Suffolk Day, with a 100 mile bike ride around its branches raising money for St Elizabeth Hospice. With several other fundraising efforts, and matched funding, over £16,000 was donated to local charities. In addition to this, a total of £39,000 was paid to three local charities in respect of members’ affinity accounts.
