Principality posts 1.6% lending rise as book tops £5bn

Principality Building Society increased mortgage lending by 1.6 per cent in the first half of 2015.

Its interim results, which cover the first six months of the year, show lending rose from £545.5m in H1 2014 to £554.7m in H1 2015.

The Wales-based society’s book surpassed £5bn for the first time at the end of June – up from £4.8bn at the end of December. Around 87 per cent of its mortgages were funded by savers, down from 91.4 per cent at the end of H2 2014.

Pre-tax profits hit £23.2m – down from £30.6m in H1 2014, although this included a £10.1m one-off benefit from a change in the pension inflation assumption.

Chief executive Graeme Yorston says: “I am delighted to report another very strong set of results for the Principality Group for the first six months of 2015, where we have seen our strategy of growing the core business continuing to deliver.”