Added: 24 February 2017
Ipswich Building Society 2016 Full Year Results
Managing change to protect and enhance our future
Ipswich Building Society has announced its results for the year ending 30th November 2016, reflecting its successful return to the mortgage market following a period of IT transformation and response to new lending regulations.
The Society pursued a number of key initiatives during the year as it sought to set the foundations for future growth, including the launch of an innovative new savings range, based on market conditions and meeting the needs and lifestyles of its members. On lending, the Society continues to use expertise in manual underwriting to enable decisions based on applicant circumstances and to champion mortgage misfits who find themselves locked out of the mainstream mortgage market. Its commitment to intermediaries has increased, with 80% of mortgage business generated through a broker.
A number of changes came from within the Society, notably the retirement of Paul Winter as CEO after almost ten years in the role. Paul was succeeded by Richard Norrington on 1st December 2016, an experienced banking sector leader, formerly at Clydesdale & Yorkshire Bank and Barclays Bank plc.
Key numbers (note this year’s Accounts reflect a mandatory change in Accounting Standards – the Financial Reporting Standard 102 (FRS102):
- Total profit (before tax) of £2.6m (2015: £2.5m as restated under FRS102)
- Mortgage assets up £23m at £477m (2015: £454m as restated under FRS102 )
- Savings balance growth of £17m to £541m (2015: £524m as restated under FRS102)
- Slight decline in capital to £33m, from £36m in 2015, however the proportion of retained reserves has increased making the capital structure stronger overall
Sarah Evans, Chairman, Ipswich Building Society, comments:
“2016 was punctuated by periods of change and adjustment which the Society has ably dealt with, proving resilience and a strong foundation which will continue to enable future growth and the protection of our mutual status.
“External events, including the EU referendum, have brought new focus on the mortgage market and household finances in general and we have recognised the need to remain responsive around our members’ changing circumstances, to continue providing our intermediaries with high quality service and to maintain our strong links with the communities we serve. Our plan to open a new flagship branch, Mutual House, in Ipswich, is an indication of our commitment to remaining on the High Street.”
- Large increase in the number of mortgage applications processed by the Society, from 617 in 2015 to 1011 in 2016; 113 of total completions were to self-build borrowers
- Improved service levels to brokers, reducing number of days for a mortgage application to reach offer stage from 35 in 2015 to 19 in 2016
- Community Engagement Partner of the Pigs Gone Wild art trail in Ipswich, an initiative which is estimated to have generated a £1m boost to the local economy
- A total of 1,134 volunteering hours to the community by the Society’s employees; 718 hours spent delivering financial education in the classroom to children and adults across schools, colleges and prisons
- Branch customer satisfaction score of 98%, in line with 2015, with an increased Net Promoter Score (NPS) of +83, compared to +82 in 2015