Record results for building society
BEVERLEY Building Society has achieved record growth in 2013.
The society saw a 7% rise in its mortgage book, up from £131m to £141m, and a £4.1m increase in savers’ deposits to £168.7m in the 12 months to December 2013.
Net profit grew for the fourth year in succession, up 23% from £206,000 in 2012 to £254,000, and general reserves continued to rise steadily for the sixth year in a row to reach £8.8m.
The performance produced an overall balance sheet growth of 1.03%, increasing assets to £181.3m from £179.5m in 2012.
Beverley Building Society was established in 1866 and is one of the UK’s oldest building societies. Chief executive, Peter Myers, said the business had achieved success against the backdrop of challenging economic conditions by offering easily-understood financial products and focusing on customer service and community engagement.
He said: “At the end of 2011 we set out a three-year strategy to protect Beverley Building Society’s position as East Yorkshire’s only independent mutual and develop the business in line with the principals on which we were founded – to look after people’s savings and help them buy homes.
“The second year of the strategy has been a great success; we have seen growth across all areas of the business and people recognise the fact we are a mutual with no shareholders to satisfy and that we don’t pay ourselves bonuses, so in an era when trust in high street lenders is at an all-time low we are able to show people there is a safer, local alternative for managing your money.”
Myers added that the market for mortgages has been extremely competitive, with new organisations entering and Bank of England initiatives, such as the Funding for Lending Scheme (FLS) and Help to Buy, both reducing the cost of funds and increasing the supply. The Society has chosen not to take part in these schemes, however, it said like all financial services organisations, it has been impacted by the market effects of these initiatives.
Myers said: “For borrowers, the news has been good, with more funds available at lower interest rates. However, for savers, the situation has been less positive, with cheaper funds from the Bank of England meaning there was less demand for savers monies; as a result we are conscious that it has been necessary to reduce savers interest rates.”
