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Chief executive’s joy at 19% profits climb
DARLINGTON Building Society's profits
rose by 19 per cent last year, boosted by
the crisis surrounding beleaguered bank
Northern Rock.
The mutual, which releases its results
today, said new lending was ten per cent
higher than 2006 - at £158m - and total assets
had increased by 14 per cent, to
£689m.
It also saw a three-fold increase in the
opening of savings accounts in the last
four months of the year, as an influx of
former Northern Rock customers looked
for a safe haven to bank their deposits.
Pre-tax profit was up by 19 per cent to
£2.2m and total mortgage balances increased
by 11 per cent to £538m.
A statement from the society said: "At
a time when the financial markets are
still dealing with the effects of last year's
credit crunch' and a major regional employer's
future is in doubt, the region's
only local building society, Darlington
Building Society, has provided some
much-needed good news in announcing
strong results for the year ended December
31."
Peter Rowley, chief executive of the society,
said: "These excellent results show
that building societies are not the same
as banks.
"Whereas the latter have encountered
severe difficulties raising funds, retaining
quality assets and writing off huge
sums, we have shown that, by focusing
upon core markets, sticking to what we
know and do well, we can thrive where
others falter."
He said the society's gross lending last
year was more than twice the increase in
mortgage lending nationally, and was
funded predominantly by existing and
new members.
As a result of the Northern Rock crisis,
during the final four months of the year,
Darlington Building Society, which employs
150 people, received more than
three times its usual intake of deposits
from savers.
Mr Rowley added: "These results
demonstrate that while the outlook for
this year is uncertain, our savings and borrowing members can benefit from the
advantages that we offer as a strong and
highly liquid mutual financial firm dedicated
to looking after local interests of
the individuals and communities that we
serve."
Despite the warning of uncertain
times to come, he said the society's good
performance last year had continued into
this year, and this year was already
stronger than last.
"Our inflow of members' deposits, the
completion of new mortgages and the
pipeline of applications are all higher
than the comparable stage twelve
months previously," he said.
"We are looking forward to maintaining
our progress and producing another
strong performance during the coming
year."
Darlington Building Society was
named one of the UK's top ten most competitive
lenders last year by research
from online mortgage company
mform.co.uk
It came in fifth place nationally, followed
by Yorkshire Building Society in
sixth.
10:04am Tuesday 12th February 2008
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