Scottish Building Society sees record increases in mortgage lending and savings

Paul Denton

In a year the society described as “extreme conditions”, profit before tax increased by 34 per cent to £840,000.

Paul Denton, chief executive, said the strong performance was driven by the society’s commitment to support Scottish homeowners through tough times. Active members increased 9 per cent, while new mortgage lending doubled and saving balances rose 18 per cent.

Mr Denton said: “One of the strongest pillars of a trusted brand is its history and heritage. Throughout our 173 years, we have supported members through wars, recessions and now a generation-defining pandemic.

“As a society, we have adapted quickly whilst staying true to our purpose: to help members ‘build for the future’.”

The society stayed open for customers throughout lockdown and did not use any government support schemes, such as furlough and rates relief.

Mr Denton added: “It did not seem right to take government aid at a time when other areas of the economy were in far greater need. That remains our position going forward.”

Mr Denton said serving the interests of the society’s members remained the focus. He said: “It is not all about growth – during the pandemic staff worked tirelessly to support members impacted financially by Covid-19.”

More than 500 members were allowed to defer mortgage payments by up to six months, and the vast majority are now back on a stable footing.

He said the rise in membership, mortgage lending and savings balances put “Scotland’s building society on a strong footing to build for the future”.

Mr Denton added: “The reduction in the Bank of England Bank Rate created pressure on our margins. However, due to strong mortgage growth and tight control of costs, our operating profit for the year increased by 120 per cent to £971k.

“With an uncertain economic outlook, we prudently increased our impairment provisions, however, despite these our profit before tax for the year increased by 34 per cent.

“I am particularly proud of the fact that the growth in profits is a direct result of increased mortgage lending and that our savings members still benefit from market-leading rates, particularly on our Loyalty ISA.”