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Nottingham Building
Society
Results for the six-month
period ended 30th June 2024
Nottingham Building Society
delivers a positive financial performance, achieving growth in
mortgage lending in a challenging economic environment and progress
in transformation
The key performance indicators disclosed below are based on
the position at 30th June or for the 6-month period
ended 30th June, unless otherwise stated. The average
Liquidity Coverage Ratio ('LCR') represents a 12-month average for
the period ended 30th June 2024.
·
£525.7m gross new lending (2023: £457.1m),
representing an increase of £68.6m or 15.0%;
·
£3.9bn
total mortgage assets (2023: £3.3bn), being growth
of £0.6bn or 18.6%;
·
4,069
new mortgage customers (2023: 3,630), an increase
of 12.1%;
·
£4.0bn
total savings balance (2023: £3.1bn), an uplift of
£0.9bn;
·
£71.5m
total interest paid to savers (2023: £35.4m), an increase
of £36.1m;
·
£9.0m
underlying profit before tax (2023: £13.7m), representing
a decrease of £4.7m;
·
£0.7m
profit before tax (2023: profit before tax
£11.7m), representing a decrease of £11.0m and incorporates
anticipated expense associated with Philips Trust
Corporation;
·
1.87%
underlying net interest margin (2023: 2.00%), being an
absolute decrease of 0.13%;
·
76.6%
underlying cost : income ratio (2023: 64.4%), an increase
of 12.2%;
·
Expected coverage loss coverage ratio of 15bps
(2023: 18bps), a
decrease of 3 bps;
·
The
Nottingham continues to benefit from a
robust capital / liquidity
base, demonstrated by:
o 14.0% CET1
ratio (2023: 16.3%);
o 5.3% Leverage
ratio (2023: 5.9%);
o 169.3% average
LCR (2023: 177.3%);
·
4.9
Trustpilot score (2023:
4.8);
·
61.3%
net promoter score (2023: 67.0%);
and
·
1,200
colleague volunteering hours (2023:
817)
Sue
Hayes, Chief Executive Officer ('CEO') commented on the
results:
"I am pleased with our financial results for the first
six-months in 2024 which generated an underlying profit of £9.0m
(2023: £13.7m).
Following our decision to support members impacted by Philips
Trust Corporation through a voluntary support payment, our profit
has reduced in the first half of 2024 to a Profit Before Tax
('PBT') of £0.7m (2023: PBT of
£11.7m).
Our underlying business performance is strong with an 18.6%
increase in gross mortgage balances compared with June 2023. We
achieved significant growth in lending while the overall UK
mortgage market grew substantially less.
We
continue to invest in both our core IT systems and in developing
innovation that will improve our mortgage application and credit
risk decisioning processes in the future.
Alongside this, we achieved good growth in our savings
balances of 26.9% compared with June 2023. 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
£71.5m in interest to savers in 2024 (2023:
£35.4m).
Looking to the future, we will continue to progress our
transformation plans, delivering the great customer service we know
our members value whilst continuing to focus on innovation in our
products and propositions in order to build a future fit society
for our members and brokers."
Sue Hayes
Chief Executive Officer
24th July 2024
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