Continued investment in branches helps The Nottingham deliver another year of strong results
The Nottingham Building Society (The Nottingham) has today announced its results for the year ended 31 December 2017 which show further strong progress in the development and growth of the Society and its ‘all under one roof’ advice and service proposition.
Key achievements and financial highlights of 2017 include:
- Record gross mortgage lending of over £1 billion for the first time
- Overall mortgage book growth of 11.6%
- Strong growth in savings held with the Society – total savings balances held with local branches now £2.1bn, up 8% in the year, more than doubled in the last five years
- Opened seven new branch locations bringing total network to 67 branches over 11 counties
- Welcomed over 25,500 new members
- Consistently strong advocacy with a customer Net Promoter Score of 79%
- Total assets of £3.9 billion
- Group pre-tax profit of £14.5m, a small improvement on the prior year
- Arrears levels remain very low, below a quarter of the industry average (2017: 0.15% v industry at average of 0.82%); representing 40 accounts out of a total mortgage base of almost 26,000 accounts
- Strong capital ratios with Common Equity Tier 1 at 14.6% and leverage of 4.9%.
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David Marlow, Chief Executive of The Nottingham, said: “As a mutual we have a clear purpose and strong heritage of providing our members with a safe, secure and rewarding home for their savings, and helping them put a roof over their head. And in today’s complex and challenging world we have a broader and important role helping our members plan for and protect their financial futures. That is why, over the past few years, we have developed and invested in our ‘all under one roof’ proposition offering a broader range of services including estate agency and lettings services, whole of market mortgage advice and independent financial planning.
“We passionately believe that branches have a key part to play as they provide the human touch that so many of our members still value. The consistently fantastic reaction we have whenever we open in a new location tells us that face-to-face service is still important. This is best reflected by the fact that branch savings balances continue to grow, increasing by a further 8% in 2017 - more than double the level of 5 years ago.
“Following a strategic review of how our network teams are organised we have updated our approach meaning some branches now open earlier and close later in line with customer demand, and in 2018 we have started to add estate agency and building society services to those branches that currently do not offer all these services.
“Whilst many organisations have been closing branches we added a further seven new locations to our branch network at the end of 2017, taking our total to 67 branches across 11 counties – the 5th largest building society branch network in the UK. We are now trading on the high street in Norfolk for the first time in the society’s history.
“A key part of our strategy is to reward loyal savings members for doing the right thing to protect and plan for their family’s financial future, and in doing so we want to make membership have real and enduring value. That is why we launched our Member Rewards programme in May 2017. Since launch we have shared over £250,000 with our savings members in the form of cashbacks, discounts or exclusive savings offers and seen the number of members eligible to receive these benefits increase by 10%.
“As well as rewarding our savers we have worked hard to grow our appeal to borrowers. 2017 was a record year for mortgage lending with £1.0bn of completed new mortgage lending for the first time, a 28% increase on performance in 2016. And just as important is the number of borrowers choosing to remain with the society at the end of their mortgage deal. In 2017 two out of every three chose to stay, representing £601m of retained mortgage lending, an 8% increase on 2016. Overall this enabled us to increase our mortgage assets by 11.6% - a strong performance in a competitive marketplace.
“Whilst branches are vital to our strategy, increasing and improving our digital offering to existing and prospective new members will also be important in the years ahead. As technology improves, we believe that we can develop our unique proposition to work seamlessly between the world of face-to-face and digital service. 2017 saw us commit to a multi-million pound investment to develop our digital capability to complement our growing physical presence. Customers and members will see the first step in this journey in 2018 as we replace our current web portals for intermediary mortgage business and online savings – making it even easier to do business with us.
“As a mutual we are committed to supporting the local communities in which we operate. Through our Doing Good Together programme we donated over £37,000 to 14 local charities, worked with Young Enterprise in 34 schools, volunteered 1,350 hours and reached a milestone of £50,000 raised for our long term charity partner Framework who work to combat homelessness”
”We are owned by our members and one of the best endorsements of what we do is the consistently high level of customer satisfaction we see, with 8 out of 10 members rating the service they receive for us as ‘excellent’. And we see this focus on service reflected in our very strong Net Promoter Score of 79%.
“After a year of strong progress and despite continuing uncertainty in the economic and political environment, we can be confident that we can move forward on our firm foundations. In 2018 we will be focusing on growing and rewarding membership further. This will involve continuing the work of recent years; developing our nascent member rewards programme, bedding in our enlarged and reorganised branch network, rolling out our plans to fuse digital and physical to create a strong platform for our unique proposition and building on our progress in mortgage lending.
“As always we will strive to deliver first class service across all of our customer facing operations and continue to support our communities through our Doing Good Together initiative.”