Bath Building Society reports profits of £962,000

24 March 2010 | By Natalie Thomas

The society’s parent assisted mortgage launched at the end of 2008 and the society says it has been well received.

Likewise, it says its buy for uni mortgage, which enables students to purchase a property with parents acting as a guarantor, and a mortgage specifically for the self-build market has continued to demonstrate that targeting niche groups can bring long term benefits to its mortgage lending arm. 

Dick Jenkins, chief executive of Bath Building Society, says: “We have always been very aware of where our strengths lie and our stability is a result of a consistently cautious approach.  When times were good we were often accused of being too risk-averse, however, we remained firm in our strategy as we take our responsibility to our members very seriously. 

“Of course the unprecedented changes in the financial services market in the past few years were bound to have an impact on building societies and some have fared better than others.  Seeing the fate of the Chelsea Building Society, based in Cheltenham, and, just this week, the Stroud & Swindon has brought the difficulties in the market closer to home – quite literally, in fact.

“Rather than embrace trends such as sub-prime mortgages or relying on computer-driven lending our approach has been to develop our own niche products.” 

The society’s savings arm also saw growth in 2009, with shares and deposits up by 17.8% to more than £236m. 

Diversification has also paid off for the society, with subsidiary Bath Property Letting experiencing a three-fold growth over the past three years.

Jenkins says: “A buoyant rental market has resulted in a strong performance for our lettings arm.  We are extremely pleased that we have been able to instil the same values – consistency, high service levels and strict adherence to industry regulations – into this business as we have into the society.”

Bath & City Financial, the independent financial advice business, increased its client base considerably during the year, assisting the society’s customers with independent investment, mortgage, protection, inheritance tax and pension advice.  

Jenkins confesses to being ‘cautiously optimistic’ about the coming year.

He adds: “The past two years have been some of the most challenging in the history of the society.  Whilst we appear to be weathering the storm fairly well, this is no time to be taking our eye off the ball.  We are determined to pursue a safe strategy in the interests of all of our members.”

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