Performance 'on target'
Profits hit but Scottish Building Society upbeat
Scottish Building Society has announced a reduced pre-tax profit of £1.27 million during the year to 31 January 2017.
The figure is £300,000 down on the previous year’s total, though chief executive Mark Thomson said the performance met the targets outlined in the Society’s five-year plan.
Mortgage balances increased by 8.8% to stand at a record £311m. while savings balances also grew to an all-time high of £365m. compared to £342.1m. in 2016.
Total assets increased by just over £20m. to £409.2m., with reserves up from £31.5m. in 2016 to £32.6m. in 2017.
The Society has also developed its loyalty programme, including the launch of a new Loyalty Cash ISA with enhanced rewards for members.
Speaking to members at the Society’s AGM in Edinburgh, Mr Thomson said: “Our pre-tax profit of £1.27m. for the past year is within the range we target to maintain financial stability, and is achieved after reducing our margin to provide loyalty benefits to both mortgage borrowers and savers.
“The launch of our Loyalty Cash ISA allows members to benefit from enhanced rates of interest the longer funds are deposited with us and is another vehicle for allowing our members to benefit from membership of a financially strong mutual, focused on rewarding our members rather than paying dividends to shareholders.”