West Brom delivers robust results despite increasing competition

West Bromwich Building Society has delivered a strong set of half year results against a backdrop of increased competition.

For the six months to the end of September, the mutual reported £466m advanced for new mortgage lending, compared to £478m in the prior year period as it said it maintained traction in a “highly competitive” market.

Profit before tax came in at £6m, a year on year increase of 43%, compared £4.2m in 2017.

West Brom said it enabled more than 2,000 people to purchase their first home during the half-year. –

Jonathan Westhoff, chief executive, said: “The Society has delivered a strong half-year performance, despite an increasingly competitive market, with a 43% increase in profits and continued all-round support for our members.

“Improved profitability allows us to grow the business sustainably and invest in the type of products and services we can offer. In recognition of our role in supporting those who aspire to own their own home, advances to first time buyers accounted for over a third (38%) of our total new lending during the last six months.”

Westhoff said that the society has broadened its product range so it can support borrowers who have more specialist needs, making a controlled entry into the self-build, assisted mortgage and limited company buy to let markets.

He added: “The heightened levels of political and economic uncertainty surrounding Brexit and intensified mortgage market pricing competition could present considerable challenges for the financial sector in the months and, potentially, years to come.

“In the face of these challenges, the society will continue to be there for its members with its responsible approach to lending and supporting its savers. Alongside established distribution channels such as our branch network, the Society is committed to investing in its core technology platforms to allow greater digital capability and operational resilience, which is something members quite rightly expect from a modern building society. Work in this area is well underway and will continue to be a significant focus for us in the years ahead.”

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