Steve Hughes

Steve Hughes of Principality building Society

Principality Building Society growth continues

The Principality Building Society has reported a stellar start to the year after seeing its total assets smash the £9bn barrier for the first time in its history.

Principality Building Society has announced excellent half-year results driven by an increase in net residential mortgage lending of more than £357m, while total assets have risen to £9bn for the first time in the society's history.

The Cardiff-headquartered building society also reported a rise in pre-tax profits from £23.9m for the same period last year to £31.8m for the six months ended 30 June.

Steve Hughes, chief executive of Principality Building Society, said: "It's been a great start to the year for the society, with a really strong lending performance.

“Our capital and liquidity remains strong and our low arrears levels reflect the prudent nature of our balance sheet.

“The building society has delivered a profit of £31.8m with all of our businesses making a meaningful contribution, providing resilience and security for our members.

"I have been in post as chief executive since March and during that time I have visited every one of our 71 branches and agencies. I have witnessed the importance of the personal service we provide.

“I have had great feedback from our members on how they value our excellent personal service and I can see the important role we play in our local communities.”

Looking to the second half of the year, Hughes added: "Our outlook for the second half of the year looks robust.

“However, headline profitability will fall in the coming years as we consciously invest in the business to improve further the propositions and service we provide for members and customers.

“This will involve significant investment in technology, processes, and our colleagues and in developing our branch network to meet the changing demands of our members. 

“Political and economic uncertainty has undoubtedly affected the financial landscape but the Principality balance sheet is strong and is well positioned to deal with any impacts this might have. 

“We will continue to provide a stand out experience for our members and customers whilst investing in our business for the long term."