Principality lending hits four-year high
Principality, the building society, provided borrowers with a four-year record £1bn and raised £814m in 2011 but pre-tax profits fell 20 per cent to £24.5m.
Chief executive Peter Griffiths said the sector faced short-term challenges from heightened regulatory demand for capital and liquidity, increased cost of funding and the impact of a continued low interest rate environment.
But he said the building society could benefit from its focus on members and freedom from requirement to pay dividends to shareholders.
He said: "The future remains uncertain, with both micro and macro economic issues to manage. A huge opportunity exists to deliver a differentiated business model underpinned by quality customer service and localness of relationship.
"While we expect further challenges around regulation, capital and liquidity, not to mention worsening economic issues, I remain confident that Principality is in great shape to respond to the changing climate."
Strong demand in the rental market helped the group's Peter Alan double lettings over the year.
Principality Commercial traded profitability over the year, but its lending book was flat and is likely to be again in 2012. But Griffiths said: "We are starting to see small, encouraging signs of development opportunities re-emerging as confidence returns to some parts of the commercial market."
