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Dudley Building Society > News > Strong performance reported at the half way point

Strong performance reported at the half way point

A summary of the last six months

18th October 2018

Dudley Building Society has announced a very positive set of results, including a pre-tax profit of £912,000, at the mid-way point of its 160th year.

The interim results - that reflect on the period from the beginning of April 2018 to the end of September in the same year - have posted record lending growth and increased inflow from retail savers. In addition, the Society continues to outperform its peers in metrics relating to the likelihood that members would recommend the Dudley to others. This underpins the Society’s position of measured growth whilst remaining very much focused upon delivering the right outcomes for its members.

Mortgage growth in the first half of the year has outpaced the market at 8.3% (market growth is reported at 5%) with gross lending of just over £38 million. The business being underwritten continues to be of high quality with continued low levels of arrears across the whole mortgage book (less than 0.1% accounts are more than three months in arrears from new lending since 2012).

Savings balances increased by £20.5 million taking overall deposits to a record £393.9 million, with the average savings account balance per member increasing by 6%.

Total assets have grown to a record £419 million, resulting in the Society moving up in the building society league tables.

Capital and liquidity strength have been carefully maintained with profits increasing in line with mortgage asset growth. Capital headroom has been maintained at £7.2 million.

The Society is ranked number 1 in the building society sector for employee engagement having been rated ‘Outstanding’ by the Best Companies to work for accreditation in its last assessment, which places it in the top 25 businesses to work for in the Midlands.

Society Chief Executive, Jeremy Wood, said, ‘We are delighted to be announcing such strong half year results. I believe building societies are more popular than ever with consumers. We have been very clear about the way in which we have structured and delivered the growth in our business on behalf of our members. We have delivered on the ambition we set ourselves and returned profit levels that are essential to ensure the Society’s continued investment’

The Society’s members have continued to be the focus of its activity with its overall Net Promoter Score (a statistic generated following member feedback on the likelihood they would recommend a businesses product or service to friends or family) increasing to +87 (31 March 2018: +83), and a Value for Money Score of 94.2%, all supported by consistently high levels of customer satisfaction that scored well above peer group at 99.2%. All data was captured by independent review platform Smart Money People.

The continued investment by the Society has seen a 10% increase in headcount and at least 20% of employees being supported through a wide range of qualifications.

Jeremy also added, ‘We are seeing steady increases in our members’ deposits; effectively funding the growing demand for mortgages across the country. I believe that this trajectory will remain positive as long as we ensure measured and calculated growth – not only as one building society out of 43, but the economy as whole. In spite of uncertainty in the country, we have continued to grow in our chosen markets and deliver high quality, profitable business.’

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