Teachers Building Society has announced its annual results for 2011. The key highlights are:
• A 29% increase in profit before tax to £686,000 (2010: £531,000).
• Gross capital ratio up to 9.34% (2010: 8.62%).
• Reserves up to £19m (2010: £18.8m).
• Gross mortgage lending up 31% on 2010.
• Minimal dependence on wholesale funding.
While 2011 was another tough year for the global economy, Teachers Building Society remains financially strong and is looking to increase lending following a successful entry into the broker market last year.
James Bawa, Chief Executive of Teachers Building Society, said: "We set out a new strategy last year to ensure our continued strength; investing in a new brand identity and website and re-entering the broker market. So it’s particularly pleasing that we still returned such a positive result and, in fact, the final few months of the year saw a significant increase in our mortgage lending. The property market continues to challenge but we helped many first-time buyers into their own homes through the equity loan scheme FirstBuy and remain one of the only lenders supporting the scheme with a no deposit option.
“We are now actively promoting our mortgage products to our local Dorset community and we continue to offer very competitive interest rates and an excellent level of service to both savers and borrowers. This was recognised by Teachers Building Society winning two prestigious industry awards – ‘Best Local Building Society’ at the 2011 What Mortgage Awards and ‘Excellence in Treating Customers Fairly’ at the Mortgage Finance Gazette Awards 2012. Our Regular Saver, Cash ISA Reward and Business Saver accounts have all featured heavily in the Moneyfacts Best Buy lists over the last year too.
“Our customer satisfaction scores also remain very high, with 96% rating our service as ‘good’ or ‘excellent’.
“We expect interest rates and market conditions to remain flat this year and into the next, but even so we plan to develop the business further in 2012 with more mortgage business coming from intermediaries and our local area.”