Hinckley & Rugby Building Society has revealed strong growth in its mortgage lending and its savings balances in its annual results published today.
The 12 months to the end of November 2016 saw a 34 per cent increase in mortgage advances (£172m, up from £128m in 2015). The current year began with a bigger pipeline of £55.6m of mortgage business (£37.3m in 2015).
The total mortgage book grew by 14 per cent in the year to £540m, almost triple the five per cent increase seen a year previously.
Net interest income was up from £6.74m to £7.08m. The net interest margin was almost unchanged at 1.17 per cent (1.20 per cent in 2015). Profit for the year before tax was up at £0.34m (£0.18m in 2015).
The Society’s Buy to Let advances remained level at £29 million and represent an unchanged 18 per cent of the overall mortgage book.
Savings balances grew by £34m during the 12 months to £521.3m, almost double the £18m secured a year earlier. More than 90 per cent of the Society’s members with savings accounts live within its core branch area.
The vast majority of the Society’s overall funding comes from its branch based savings accounts and the Society has very little short term wholesale funding.
Chief executive Chris White said:
“Our thanks go to our talented and loyal staff who have enabled the Society to deliver on its ambitious business goals of significant growth via great value products and outstanding levels of service.
“We aim to have a successful business which has a sustainable level of profitability and a growing member base, because we are seen as a relevant and natural choice locally and a preferred choice for selected mortgage intermediaries.
“Over the next three years the Society plans to use the strength of its capital base to maintain the rate of growth in its residential mortgage book in order to improve its cost income ratio and its profitability.”
Chairman Colin Franklin said:
“The directors remain confident that the Society’s high quality balance sheet, robust capital ratios and careful approach to managing risk will continue to underpin its financial strength and place it in a strong position to continue to grow.”
The Society’s 151st annual report will be presented to members at the AGM at 10.00am on March 22 at the Hinckley & Rugby principal office on Upper Bond Street, Hinckley.