CARLISLE, England, June 6, 2023 /PRNewswire/ -- The Cumberland Building Society continues to support customers and communities through its 'kinder banking' purpose as explained in its annual report, published today.
Chair John Hooper said the Society had performed "exceptionally well," underlining its position as the region's leading mortgage and savings provider.
Mortgage lending increased from £2.2bn to £2.37bn as the Society's balance sheet topped £3bn for the first time. Deposit balances also grew, from £2.44bn to £2.61bn, while profit before tax rose to £26.6m.
More than half of those profits were the result of interest rate swaps the Society took out to protect itself against a sudden rise in interest rates. Operating profit rose to £12.3m ensuring the Society remains safe and resilient, well positioned to meet future challenges.
As a mutual owned by its savers and borrowers, The Cumberland was quick to boost rates for savers as the Bank of England raised interest rates in 2022-23.
Chief Executive Des Moore said higher interest rates presented an opportunity for the Society to live up to its slogan of 'kinder banking'.
He added: "To reassure borrowers, we've pledged to give those coming to the end of fixed-rate terms preferential deals on new products and we're on hand with specialist advisers if any of our borrowers experience financial difficulty."
Mr Moore paid tribute to The Cumberland's workforce who "never faltered in their dedication" and said the Society remained committed to its branch network at a time when many banks are shutting branches.
The Cumberland is a specialist lender to the hospitality sector. Lending here increased too while Borderway Finance, the Society's specialist vehicle finance subsidiary, performed strongly contributing almost £1m to pre-tax profits.
The Society has been working hard to transform its business under the Cumberland 2025 banner since 2018. Much has been achieved and strategic options are being evaluated to secure a more sustainable future.
The Cumberland donated £205,000 to charitable causes in 2022-23. This year, it has pledged to donate £2 to FareShare Lancashire & Cumbria for every vote received at its annual general meeting.
The year saw The Society retain its Feefo Platinum Trusted Service Award for customer service. It was recognised nationally for customer experience, being awarded the Best Customer Experience in the Crisis at UK Customer Experience Awards. It was also named as one of the 'best large companies in the Northwest to work for' by Best Companies.
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Media contact:
Nick Turner
+44 (0)7738 414357
nick@weareintro.co.uk
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