Teachers Building Society has announced its annual results for 2010. The key highlights are:
- A 27% increase in profit before tax to £0.531m (2009: £0.420m).
- Gross capital ratio up to 8.62% (2009: 7.64%).
- Reserves up to £18.8m (2009: £18.0m).
- Liquid assets up to £58.6m (2009: £57.6m).
- Minimal dependence on the wholesale money markets for funding.
Despite continuing turbulence in the economy and the impact of the historically low base interest rates, Teachers Building Society remains financially strong and committed to serving its core markets of teachers and the local Dorset community.
James Bawa, Chief Executive of Teachers Building Society, said: "I’m pleased that we have been able to return such a positive set of results in another difficult year for consumers and the economy. Net lending in the UK reached a record low last year, but by continuing to support affordable home buying initiatives, such as the equity loan scheme HomeBuy Direct, we have been able to help many first-time buyer teachers to step onto the housing ladder.
“We continue to offer very competitive interest rates to both savers and borrowers. This was recognised by Teachers Building Society being commended at the 2010 Moneyfacts Awards for the second year running for our no notice savings accounts. In addition, our Regular Saver account, launched in late 2009 has proved extremely popular and which remained in the Best Buy lists during 2010.
“Our customer satisfaction scores also remain very high, with our survey showing that 96% rate the service we provide as ‘good’ or ‘excellent’. This is a very high score for any sector, not just in financial services.
“Our healthy balance sheet reflects a strong reserve ratio and we continue to benefit from our specialised lending service, which gives us a real understanding of our mortgage customers. Over the last year we have also removed arrangement fees on most of our mortgage products, and strengthened our commitment to a truly personal service by doing away with the previously automated phone system.
“It is also creditable that we have reduced our arrears cases, and achieved stronger capital and liquidity positions. Challenging times undoubtedly still lie ahead for both consumers and financial services providers, but Teachers Building Society is well placed to continue supporting more consumers’ savings and mortgage needs, and emerge even stronger through 2011 and 2012.”