Simplicity helps Scottish Building Society hit record
Scottish Building Society has posted record results for the year ended 31 January and said its survival as the world’s oldest remaining building society was partly a result of its simple structure.
Established in 1848, the six-branch society still only offers savings and mortgage accounts.
Chief Executive, Paul Denton said: “We are as committed to our wider purpose today, as we were back in 1848. As a mutual society, we reward our members with fair interest rates whilst responsibly using those funds to provide flexible mortgages, enabling Scottish people to buy homes and get on the property ladder.
“The environment has changed over the years, but that simple strategy has helped the society survive and thrive towards its 175th anniversary next year.”
Mr Denton added: “Despite the historic low base rate, we have continued to pay savings rates above the market average, whilst our income has benefited by growing our mortgage balances more than 36% in the last two years. We are now helping more members buy their homes than ever before, which is something we are incredibly proud of in today’s fierce mortgage market.
“Unlike retail banks who are moving out of towns and cities across the country, we are working harder than ever to provide for our members- be that through online or in-person banking.”
The mutual has seen its balance sheet grow by nearly 40% in the last 2 years, leading to a pre-tax profit of £2.4m and mortgage assets of £454m.