Society Announces Resilient Performance in Unprecedented Year

Thanks to a continued commitment to member-led services, the Newport-based Society has announced a £1.6 m profit after tax.

Will Carroll, Chief Executive Officer at Monmouthshire Building Society, said: “Despite the challenges of the COVID-19 pandemic, I am delighted to report that the Society has had a successful year. The past year has been challenging for us all but despite a difficult period, we’ve not stood still.

“As a mutual Society we are committed to delivering on our purpose to help members, communities and colleagues to thrive today and tomorrow.  With competitive, value for money and accessible products, the Society has continued to help borrowers at a time when many lenders deserted those with low deposits due to the uncertainty of the pandemic. We’ve supported 1,057 new members onto the property ladder over the last financial year, growing our mortgage book by 11%, a performance recognised by Moneyfacts Consumer Awards as the First Time Mortgage Buyers Choice.

“Despite record low interest rates, we have also maintained competitive savings rates for our loyal investing members across all distribution channels.

“The Society embraces its responsibility to help address some of the social, economic and environmental challenges its members, communities and colleagues face, and we’ve been able to support our communities throughout the pandemic through our ever-growing community initiatives.

“As we move into a new financial year, we unveil an ambitious new strategy, building on the investment in our business over recent years, which will look to move the Society forward and ensure a long-term sustainable future.”

Key Results:

• Total assets rose to £1,386 million
• Underlying profit before tax for the year of £1.3m (2020: £0.2m)
• Profit after tax of £1.6m (2020: £ (1.0))
• At the year end, the Society’s total mortgage assets had grown by 11% to £1,14million
• Retail funding and deposits inflow was £139 million (2020: £108 million) for the year with strong performance across the investment product range
• The Society continues its commitment to supporting vulnerable and disadvantaged local communities, contributing over £9k to their strategic charity partner, Shelter Cymru
• Customer satisfaction scores were high with 95% of members surveyed saying they would use the Society again and 94% stating they would recommend the Society to family and friends
• The Society was Highly Commended in the Best Regional Lending Provider category at this year’s Moneyfacts awards, for the second year running
• The Society used £75,000 under the Government’s Coronavirus Job Retention Scheme to protect colleague jobs when the pandemic forced the economy into lockdown and its business activities were severely affected. All furloughed colleagues returned to their roles at the Society and we were delighted to announce the repayment in full of furlough monies received this year.

The Society continues to be committed to maintaining a presence on the high street at a time when many other banks and building societies are closing branches, this year opening a new branch in Brecon and a new Agency in Usk.

And with members needs ever-changing, the Society continues to progress new digitally focused initiatives including the use of robotics, to provide improved services for members.

Debra Lewis, Chair of Monmouthshire Building Society, added:

“The positive results achieved highlight our member-led approach and demonstrate our core values that run through the heart of our organisation.

 “It’s been an unprecedented year in which the Society has been able to maintain a focus on delivery of wider strategic initiatives, demonstrating resilience and agility to adapt and reprioritise its plans in response to the continually changing environment.

The Society is now moving into an exciting time as they begin their new five-year Strategic Plan.”

The full financial results can be found on the Society website www.monbs.com