N&P reports 8.8% increase in mortgage business

Norwich and Peterboroughs results for 2006 showed that total mortgage assets increased by 8.0% to 2.8bn and mortgage advances amounted to 809m.

The society reported that group pre-tax profit is up 26% to 20.2m and total income grew by 9.2% to 75.7m, while costs grew by only 3.1%.

New commercial lending advances grew by 24% and retail savings balances grew by 13.2% to 2.4bn.

Matthew Bullock, chief executive at N&P, says: 2006 was outstanding for N&P.

“We were delighted to crown a year of strong income growth and good cost control with achieving the internal ratings basis waiver under Basel ll – this underlines the quality of our risk management.

We were the first UK firm to get the go ahead from the Financial Services Authority to use our own statistical models to calculate capital requirements to be held against lending activities.

The new legislation, known as the Capital Requirements Directive or Basel ll became effective from January 1 2007.

“The society has been granted an IRB waiver under the directive by the FSA.

Our provision of expert independent financial advice through our branches is now established, very popular with our members and contributing strongly to the profitability of our retail business.

Other especially pleasing results were from commercial lending, buy-to-Let, banking and general insurance sales, and continued cost control.

On January 1 2007, N&P became the first building society to be carbon neutral, achieving the carbon neutral quality mark.

N&P now works with The Carbon Neutral Company to reduce and offset its emissions.

To offset unavoidable emissions, N&P will use UK forestry and climate-friendly technology – so that for every tonne of carbon dioxide N&P produces, a tonne will be saved.

It was an equally pleasing year in terms of service to customers and satisfaction levels amongst our customers remain very high.

“70% of customers surveyed in 2006 describe themselves as very satisfied.

Branch footfall grew by 3.5% compared to 2005, against a general downward trend in the high street. Altogether it was a vintage year.