"We have continued to grow savings balances which has been fundamental to supporting our growth in mortgage lending."
Principality Building Society has announced record lending to homeowners with gross mortgage applications of £2bn for the first time in its history.
In its full-year results released today, the Society reported growth in new residential mortgage lending by over £600m, and growth in pre-tax profits from £49m in 2015 to £50.3m.
Principality also exceeded £8bn in assets for the first time in its history.
Nemo Personal Finance, part of the Principality Group, also delivered a pre-tax profit of £11.6m despite ceasing to accept new business at the beginning of 2016.
Graeme Yorston, Group Chief Executive at the Principality Building Society, said: “Despite a challenging interest rate environment for savers we have continued to grow savings balances which has been fundamental to supporting our growth in mortgage lending. This means that we have delivered on our promise to help more people own a home than ever before, which includes helping 3,500 first time buyers get on to the property ladder.
“The Group has delivered a very good trading performance with profit before tax increasing to £50.3m. This means we have also been able to grow our capital base and have a solid balance sheet with assets of £8.3bn. This has been achieved by again increasing our lending to people to buy homes. Last year net residential mortgage lending increased by more than £600m.
“Delivering a strong performance is essential, both for our ability to withstand any downturn in the economy as well as providing investment in the business for the future. This will mean building on our current model and ensuring that we have digital capability across our business as well as a broader product set that will ensure the business is able to thrive for generations to come.”