The Cumberland Building Society has enjoyed a bumper year, which saw profits surge by 43.3 per cent and assets exceed £2bn for the first time.

The Carlisle-based mutual made £16.02 million before tax in the year to March, up from a restated figure of £11.18m the year before.

Mortgage balances climbed by 13.7 per cent as lending hit £422m, while loan arrears fell by 36 per cent – only one residential property was in possession at the year end.

Savings and current account balances also grew, by 6.0 per cent, with an inflow of funds of £75m despite the low interest-rate environment.

In the last three years, savings inflows have totalled £230m, a figure that chairman Michael Pratt described as “remarkable” given the society almost never accepts savings and current account applications from outside its branch-network area.

Writing in the annual report to members, he praised the society’s response to the catastrophic flooding caused by Storm Desmond in December.

He said: “I am proud of the way the society’s team responded.


Michael Pratt “Over 1,250 people were spoken to by telephone and, where contact could not be made by that route, a further 400 were texted to see if there was anything the society could do to help.

“This is an example of what ‘be more than a number’ [the society’s advertising slogan] means in practice, and you can have confidence that our staff seek to put your interests first and foremost every day, and not just when disaster strikes.”

The Cumberland is Cumbria’s largest financial institution and the UK’s 10th largest building society with more than 140,000 customers.

It operates 34 branches in Cumbria, Dumfries and Galloway, Lancashire and Northumberland.

During the year it was named “best regional building society” at the Mortgage Finance Gazette Awards for the second year running.

The period also saw the society extend opening hours at Cumberland Estate Agents and launch a mobile banking app, which has since been updated.

Its current accounts, for individuals and businesses, continued to be popular. Balances have doubled in the last five years.

Borderway Finance, the Cumberland’s specialist vehicle finance arm, had a successful second year following its acquisition from H&H Group, with increased lending and profitability.

The year also witnessed a flurry of changes to the board.

John Davidson stepped down as a director while David Clarke will retire after the AGM, and Michael Hulme, John Hooper and Peter Anstiss joined the board as non-executive directors.

Looking ahead, there are plans to launch an online system to enable customers to book appointments in branch or for property valuations.

And there will be a “significant upgrade” to the internet banking system bringing an updated look and feel and increased functionality.

In keeping with its mutual status, the Cumberland makes substantial charitable donations.

Its community foundation provides financial assistance to projects that have educational objectives or involve physical activities.

A separate charitable foundation made grants of £28,000 in total and the society gave £20,000 to the Cumbria Flood Recovery Appeal.

It has pledged to donate 50p for each vote received at the 2016 annual general meeting to the Stroke Association.

The AGM is at Tullie House in Castle Street, Carlisle, at 6.30pm on Tuesday July 5.