Principality Building Society’s mortgage balances have risen from £9.3bn in 2023 to £10.5bn in 2024.
According to Principality Building Society’s annual financial report for 2024, it supported 87,558 people in getting a mortgage for their own home, a rise from 80,883 in 2023.
Last year, the firm reported a significant amount of shared ownership lending.
The lender assisted around 8,120 first-time buyers onto the property ladder, a slight fall from 8,130 in the year prior.
The firm’s underlying profit before tax stands at £40.3m, which is down from £60.3m in 2023.
Principality Building Society said around 95.7% of its mortgages were funded by savers in 2024, an increase from 89.8% in 2023.
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The firm’s savings balances rose by around £1.7bn year-on-year to £10.8bn, with the “significant savings growth” supporting its “mortgage ambition”.
Affordable housing ‘one of the most pressing challenges of our time’
Julie-Ann Haines (pictured), chief executive of Principality Building Society, said: “Access to affordable housing remains one of the most pressing challenges of our time”, adding that its commercial division supports most housing associations in Wales and has funded affordable housing across the country.
In 2024, the mutual offered £25m in long-term financing in Cardiff-based Hafod, allowing the construction of 300 affordable homes over the next five years.
It has also completed the final phase of the Mill in Cardiff, which built around 800 homes. Half of the properties are discounted, intermediate or socially rented.
Principality BS committed to high street presence
Haines said that, in the past year, the company had “taken significant and difficult steps to simplify our operating model” to help savings and mortgage customers and commercial lending clients.
She added that it had also been “streamlining costs to create the capacity for purposeful growth”.
Haines noted that it was continuing its “commitment to a long-term presence on our high streets and communities that underpin member experience”.
“At the same time, we have launched our new website, allowing us to continue to improve the experience across both digital and physical channels. We are creating a future where digital and personal service work together, ensuring that members always have a choice in how they interact with us.
“These strategic steps are integral to building a society that is responsive to the changing needs of members today and prepared for the future,” she said.
Lower base rate horizon and lower inflation suggest ‘more positive outlook’
Haines said that, looking ahead to 2025 and beyond, Principality Building Society “continues to be equipped to navigate the challenging economic and political landscape that we operate in”.
She continued: “A lower base rate horizon and lower inflation could suggest a more positive outlook for UK consumers and the economy, albeit there remains concern around the cost of living for the most vulnerable within our communities.
“I am confident the society will continue to adapt and invest for the long term, with our purpose remaining at the heart of everything we do. Whether it’s helping more people into homes or building financial resilience for life’s uncertainties, we remain committed to support[ing] our members, colleagues and communities for another 165 years.”
