The Nottingham shows strong financial performance in first six months of the year
A strong financial performance, further investment including the opening of four new branches and continued popularity of its unique ‘all-under-one-roof’ proposition, has marked the last six months of trading by the Nottingham Building Society (known as The Nottingham).
It is the first time the Society has announced half year results and key achievements and financial highlights include:
Commenting on the results, Chief Executive, David Marlow, said: “After recording record profit last year I am pleased to say we have continued to show strong financial performance over the last six months. This strong performance has also been reflected in The Nottingham’s credit rating. Following a review of the UK banking sector by Moody’s The Nottingham was one of only three institutions to have their credit rating upgraded.
- A group pre-tax profit of £9.3m.
- Branch retail balances up by 7% to £1.6 billion.
- Gross mortgage lending of £268 million.
- Arrears levels remain low – falling to 0.34% of the mortgage book three months or more in arrears.
- Continued expansion with four new branches opened in Ashbourne, Matlock, St Alban’s and Harpenden so far this year.
- Customers are happy to recommend the Society. The net promoter score, which enables the Society to directly compare its performance against a range of different companies across the sector, is 74% placing The Nottingham among the very best organisations in all sectors across the world. (Average net promoter score for all finance service firms is 28%).
“A key feature of our strategy is to provide our members with access to first-class building society services, whole of market mortgage and financial advice and estate agency services all under one roof from a source they can trust; something that is increasingly hard to find on high streets today and that makes us unique in our sector.
“We know customers appreciate having local branches because it is reflected in rising savings balances and increased trading in our branches. In fact since the beginning of 2013 we have increased the number of locations where we offer building society services by over 30% with more to be planned in the months ahead.
“Customer appreciation is further tested by our independently run satisfaction programme which looks specifically at the levels of advocacy amongst our customers. In fact our net promoter score in 2015 so far stands at 74%, which is far ahead of the average net promoter score for the financial services sector, which is 28%. I’m proud to say this places us among the very best organisations worldwide.
“In the second half of the year we expect to continue to develop and invest in our infrastructure, as well as implementing a number of initiatives for staff as we work hard to make The Nottingham an employer of choice in our trading area.
“We remain committed to the belief that it is essential for the Society to differentiate strongly from the big banks though focusing on providing customers with expert advice on their financial affairs supported by a high customer service ethos. This is reflected in the fact that in the first six months of this year we have provided mortgage advice and support to over 30% more customers than in the first six months of 2014.
“Overall, I am pleased with our strategic progress and feel confident that this good performance in the first six months will allow us to continue to grow and expand the business and deliver sustainable value to our customers through the second half of the year and beyond.”