Green building society grows despite economic slowdown

Paul Ellis

West Yorkshire-based Ecology Building Society says it has ended the year with strong levels of new lending and has started 2021 with a record pipeline of sustainable lending projects.

The business, which states it provides funding to projects which “respect the environment and support sustainable communities”, issued its annual results today, which an increase in total assets of 14.13% to above £200m for the first time and a 9.43% increase in mortgage assets for the year ending 31 December 2020. Despite this growth, the business saw profits after tax fall to £0.524m compared to £1.073m in 2019.

It reports total assets of £226m (2019: £198m), savings balances at £210.3m (2019: £185.3m) and gross lending of £39.3m (2019: £43.5m).

The building society says it managed a resilient performance against the backdrop of the economic slowdown caused by the pandemic and the effective closure of the property market during the first lockdown combined with the unprecedented low level of the Bank of England base rate.

While impacted by the unprecedented low interest rate environment and higher impairment provisions, the society continued to invest in digital and operational capability.

During the year, it enhanced its range of green mortgages for renovations and whole house retrofit to drive forward energy efficiency improvements of existing homes to help meet the UK’s net-zero carbon ambitions.

And Ecology, which has its offices in Silsden, near Keighley, added to its capital base through the issuance of £3m of Core Capital Deferred Shares (CCDS).

The additional capital is enabling Ecology to further invest in innovation to accelerate its lending.

Chief executive Paul Ellis said: “These results mark another strong year of sustainable growth for Ecology demonstrating, more than ever, the resilience of our lending model and the importance of finance that has a positive impact for people and our planet.

“2021 is a special year for Ecology as we mark our 40-year anniversary of pioneering sustainable finance.

“Our members can continue to be assured that Ecology is at the heart of the drive to deliver the vital green recovery and their money is delivering a real contribution to tackle the climate and ecological crisis.

“Looking ahead our strong pipeline of lending for low impact homes and financial position gives us a firm foundation to invest in our services to our members, innovate, and grow our sustainable lending further during 2021 and beyond.

“Ecology is agitating for the Government to deliver clear and consistent climate leadership in the run up to COP26 and urgently deliver on its plans to support greener homes, which will be vital if we are to meet our Paris commitments.”

Click here to sign up to receive our new South West business news...
Close