West Bromwich Building Society sees profits rise

The society, which has branches across the Black Country, Shropshire and Mid Wales, saw profits rise from £6 million to £6.4 million in the six months to September 30 2019.

New mortgage lending totalled £251 million in the period, down from £466 million due to a "deliberate strategy to moderate lending volumes".

CEO Jonathan Westhoff hailed its "strong performance" during the first half of its financial year.

He said: "A seven per cent increase in pre-tax profit contributed to an increase in the CET 1 ratio, which not only ensures the society has the necessary capital to weather any economic challenges that may result from the current political and Brexit uncertainties, but is also able to continue to deliver on its purpose by continuing to offer real value to savers and mortgage products that promote home ownership.

"Our role in supporting those who aspire to own their home saw advances to first-time buyers accounting for 43 per cent of our total new lending during the last six months. We have continued to broaden our mortgage proposition directed at helping those that find it challenging to achieve their home ownership ambitions.

"For savers, we continue to offer a range of savings products to fit a variety of requirements, while paying an average interest rate some 50 per cent higher than the market average, delivering £13.7 million of annualised mutual benefit to savers.

"Despite the heightened levels of political and economic uncertainty surrounding Brexit and a forthcoming general election, the last six months has seen intensified mortgage market pricing competition, created in part by the ongoing availability of very low cost funding. Regrettably this has had the unfortunate outcome of reducing rates available for savers in general."

Mr Westhoff said the society has become increasingly innovative in how it provides services to member.

"Over the last six months we have upgraded our website and launched an online mortgage application tracker service to enable our new mortgage borrowers and intermediary partners to view the status and progression of mortgage applications online," he said.

"Future developments to expand the society’s online offering are in progress and will continue to be a significant area of focus for us."

He added: "We expect no let up in the challenges that currently face us, whether that is the ever intensifying margin pressure in the mortgage market, the general economic uncertainty caused by the unknowns around future global trading relationships and the ever escalating focus on climate change which will have an impact on the UK housing stock.

"Despite these challenges, as a mutual, the West Brom will continue to progress with the best interests of both its saving and borrowing members at the heart of decisions made."