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Nottingham Building
Society
Results for the year ended
31st December 2023
The Nottingham delivers a
positive financial performance for the year ended 31st
December 2023, achieving growth in mortgage lending in a
challenging economic environment as it continues its transformation
plan
Key Performance Indicators
('KPIs')
The KPIs disclosed below are based on the position at
31st December or for the 12-month period ended
31st December, unless otherwise stated. The average
Liquidity Coverage Ratio ('LCR') represents a 12-month average for
the year ended 31st December 2023.
·
£887m
gross new lending (2022: £659m), representing
an increase of £228m;
·
£3.6bn
total mortgage assets (2022: £3.0bn), being growth
of £0.6bn;
·
6,957
new mortgage customers (2022: 3,984), an increase
of 74.6%;
·
£3.6bn
total savings balance (2022: £3.0bn), an uplift of
£0.6bn;
·
£91.8m
total interest paid to savers (2022: £23.9m), an increase
of £67.9m;
·
£8.3m
profit before tax (2022: £18.9m), representing
a decrease of £10.6m;
·
£24.2m
underlying profit before tax (2022: £15.2m), representing
an increase of £9.0m;
·
1.94%
net interest margin (2022: 1.69%), being an
absolute increase of 0.25%;
·
84.6%
cost : income ratio (2022: 71.7%), an increase
of 12.9%;
·
70.5%
underlying cost : income ratio (2022: 73.0%), a reduction
of 2.5%;
·
ECL
coverage ratio of 15bps (2022: 17bps), a decrease of
2bps;
·
The
Nottingham continues to benefit from a
robust capital / liquidity
base, demonstrated by:
o 15.2% CET1
ratio (2022: 16.8%);
o 5.2% Leverage
ratio (2022: 5.6%);
o 184% average
LCR (2022: 192%);
·
4.9
Trustpilot score (2022:
3.8);
·
64.6%
net promoter score (2022: 64.7%);
and
·
2,462
colleague volunteering hours (2022:
841)
Sue
Hayes, Chief Executive Officer ('CEO') of The Nottingham, commented
on the results:
"I am pleased to report our financial results for 2023
alongside the progress towards delivering our strategy. Our
financial performance in 2023 was strong, with profit before tax of
£8.3m (2022: £18.9m), an underlying profit before tax of £24.2m
(2022: £15.2m) and an 18.3% increase in mortgage balances compared
with 2022. We achieved significant growth in mortgage lending while
overall lending in the UK mortgage market fell. We helped 6,957
(2022: 3,984) customers either take out a mortgage with us for the
first time or move to a new mortgage.
We
achieved good growth in our savings balances of 18.3%. We
diversified our proposition to offer a variety of attractive
products and savings rates to our customers via our branch network
and online savings app. As interest rates have risen and remained
high throughout this year, we have focused on paying savers the
best rates we can whilst doing what we need to strengthen the
Society. We paid a total of £91.8m in interest to savers in 2023
(2022: £23.9m).
I
am proud of the results we are sharing today and would like to
thank our members, and each one of our dedicated colleagues, for
their continued trust in the Society. We look ahead to the coming
years with a renewed sense of focus, guided by a clear and
impactful purpose, with mutuality as our bedrock.
Looking to the future, we will continue to monitor the impact
of movements in base rate on our mortgage and savings propositions,
while focusing on innovation in our products as part of our ongoing
transformation journey. We will also continue to support our saver
members with attractive savings
propositions."
Sue Hayes
Chief Executive Officer
6th March 2024
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