Profits fall at The Nottingham as it looks to a digital future

Profits have fallen at The Nottingham following a planned contraction of its balance sheet.

The building society made a £10m profit in 2019, down from £13.6m a year before as it tried to protect savings rates and continued to invest in its digital capabilities.

Incomes also dropped by almost £5m to £50.8m.

David Marlow, chief executive, said: “With the decisions we have taken during 2019, we believe we are doing all the right things to prepare the Society for a new world of financial services.

“As the nation grows older and the welfare state’s role in individuals’ lives reduces, the younger generation particularly are going to have to be more financially independent than their parents and grandparents.

“We are building a Society that will be able to meet these needs and serve a new generation of members as well as we serve our members today, but in a digital first world.

“This will no doubt require us to continue to evolve the Society, introducing innovations in savings and mortgages, without compromising our service ethos or our financial strength and continuing to support the communities in which we serve.”