The Nottingham 2018 results reveal a 19% drop in pre-tax profits to £11.8m (FY17: £14.5m).
But the results overall highlight a number of highlights. Total assets rise by 4% to £4.1bn while the mortgage book also rises by 4%.
Meantime, customer numbers rise by 25,000 helping the society to grow deposits by 13% to £2.4bn.
Nottingham 2018 results: other highlights
- Achieved a customer satisfaction score (NPS) of 79% against a sector average of 49%;
- Lowest level of complaints among financial services providers;
- Arrears levels remain below a quarter of industry average, approximately 42 accounts out of total mortgage base of 26,000, and
- Almost £5000,000 worth of cashback and discount via its Member Rewards loyalty programme.
David Marlow, CEO, says: “Throughout 2018 we made great progress against our objectives of growing and rewarding our membership. This is underpinned by a culture that encourages our people to do the right thing. And support the communities that we operate in.
“Another positive trend was branch savings balances increasing by 13% to almost £2.4bn. Our network played a key role in this, particularly the seven newest branches. The new branches achieved balances of almost £100m – ahead of our expectations.”
Nottingham 2018 results: branch investment
In December the Society launched its concept branch in Newark. Innovations include individual seated booths for transacting and the introduction of a new community area. This provides facilities and technology for community groups to take advantage of.
The Newark branch is the latest example of the Nottingham’s belief that the branch remains at the heart of its operations in an increasingly digital age
Only three major UK banks or building societies are actively engaged in growing their branch network.
Of the three, Metro Bank and Handelsbanken are well known for their strong support for the branch channel. The third major institution to grow its network is the Nottingham.
In particular, the Nottingham’s 67 branch strong network has doubled in just five years. Thus it is now of a similar size to the better known Cooperative Bank, Virgin Money and Clydesdale Bank brands.
In the building societies sector, only Nationwide (circa 600 branches), Yorkshire (160), Skipton (87) and Coventry (70) operate larger networks.
Nottingham BS digital investment
Digital initiatives in the past year include the introduction of high definition video This provides customers with on-demand broker and mortgage advice via Nottingham Mortgage Services advisers at head office.
This service has helped almost 12,000 customers find the right mortgage from across the market in the past five years. This is set to grow further thanks to the digitisation of the service.
Marlow continues; “We believe that investing in our digital capabilities is the right approach to secure a sustainable future for the Society. If we are to maintain our current standards and develop our proposition,we must continue to invest in, and develop, the capability of the Society.”
According to Marlow the drop in profits is accounted for by the Society’s increased investment spend.
Looking to the future, Marlow concludes; “2019 will undoubtedly be a year of uncertainty for us all. It is at times like these that our mutual ethos serves us well,”