Scottish Building Society reports ‘solid’ financial results

Scottish Building Society - the world’s oldest building society and Scotland’s last remaining independent mutual lender - has announced annual results for the year to 31 January showing “a solid performance” with a growth in mortgage assets of £3.4 million and gross lending rising to £51.3 million.

SBS said pre-tax profits fell 40 per cent to £1.3million in the year on on the back of investment in member loyalty initiatives designed to provide “long term value to Society members”.

However, it stressed both assets and reserves rose in the same period.

The small firm, which was founded in 1848, employs 71 members of staff and has 6 branches and 62 agency offices across Scotland.

SBS’s ‘Loyalty Promises’ initiative, which was launched in October 2015, is based on a set of six statements designed to clearly articulate how long term value will be delivered to members throughout the period of their relationship with the Society.

Announcing the results, chief executive Mark Thomson said: “We are pleased to have delivered another strong financial performance in line with our five-year plan in what continues to be challenging market conditions. These results underline that it is possible for the Society to retain its financial strength whilst providing our members with long term value.

“By operating a traditional business model where both our savers and our mortgage borrowers can consistently benefit from the best rates we are able to offer, we believe we are as relevant today as when we were founded 168 years ago.”

SBS Annual Results Highlights:

www.scottishbs.co.uk