The Nottingham posts £11.3m profit despite ‘extreme’ economic turmoil
The Nottingham has reported pre-tax profits of £11.3m after experiencing a positive six months driven by growth in its digital savings balance and new mortgage lending.
The building society said its mortgage pipeline had increased to £189m in a trading update this morning (29 July).
Against a backdrop of economic uncertainty, in the six months to 30 June the society lent over £250m and helped nearly 2,000 borrowers purchase a property.
The Nottingham also cited the strength of its retail franchise and the stability of branch savings balances as key factors in its positive showing.
Sue Hayes, chief executive of The Nottingham, said: “This marks my first set of results as chief executive since joining the Society earlier in the year and, as I settle into my new role, the warm welcome I have received from everyone highlights the strength of the team at The Nottingham.
“As outlined in the 2021 Annual Report & Accounts, we entered 2022 financially strong. However extreme uncertainty remains in the economy, and it is against this backdrop that these results are reported.
“The first half of 2022 has been dominated by the challenging external economic picture. The conflict in Ukraine, supply chain issues and soaring energy costs have led to an extreme inflationary environment. We are very mindful of the impact that the cost of living crisis will have on our members and our colleagues.
“Whilst 90% of our borrowers are on fixed rate products, and therefore protected against immediate rising interest costs, rising inflation may create affordability pressures for our borrowers in the short-to medium-term. Our level of arrears has remained very low across 2022 but we continue to monitor this closely and will continue to support members experiencing difficulties.”
