Announcing its full year results today, Hinckley & Rugby revealed it ended the year with a similar pipeline of mortgage business to the previous year – £34.6 million at the end of November 2014 (£33.8 million a year before).
The net interest margin improved from 0.91% to 1.04% – the fourth consecutive year of growth. The margin has doubled since 2010.
The Society grew its profit before tax and the FSCS levy – profit was up to £610,000, from £560,000. Profit after tax and the levy was £190,000, up from £70,000 a year before.
The Society’s total mortgage book ended the year higher, at £454 million - £8.6 million up on a year before. Buy to Let mortgages totalled £77.8 million (£66.3 million in 2013).
There was a further fall in the number of borrowers in arrears – from 25 to 23. The Society has no arrears in its Buy to Let book. As per a year earlier, there were no respossessions.
Chief executive Chris White said:
“Another 12 months of growth builds on our sustained increases in lending and margin over recent years. We are in a strong position from which to grow further whilst maintaining our traditional levels of service valued by customers.
“Hinckley & Rugby is on course for further progress, thanks to the hard work and commitment of our staff who put their skills and experience to work on behalf of our members.
“Our business development team is also continuing to work closely with a growing number of intermediaries, providing them with a proactive, professional and friendly service.”
Chairman Nigel Frostick said:
“The directors consider that market conditions will remain challenging in 2015 and beyond and that, in particular, the low interest rate environment will continue to impact profit margins.
“However, we remain confident that the Society’s high quality balance sheet, robust capital ratios and careful approach to managing risk will continue to underpin its financial strength and place it in a strong position to trade through these conditions.”
