The Cumberland, one of the UK’s leading building societies, has announced another year of strong performance. 

Its annual results include a pre-tax profit of £14.3m despite challenging and changing times across the financial sector and UK market.

The region’s largest financial institution achieved these results while conducting a significant strategic review of its business. This review has been undertaken to ensure the business remains sustainable and successful in a rapidly changing financial services market, and has seen The Cumberland begin a multi-year programme of significant investment in its senior leadership team, people, capabilities and future customer strategy.

During the year the business saw an inflow of funds of £101m, a 28 per cent uplift on the previous year, which meant all of its new lending was funded by deposit growth.

Its residential loan book grew to £1.89bn and net interest income increased by £1.4m to £40.6m.

However, along with other lenders The Cumberland has experienced increasing levels of competition in its core markets.

This, combined with the uncertainty surrounding the UK’s exit from the EU, increased downward pricing pressure on its net interest margin, which decreased from 1.66 per cent to 1.61 per cent.

Its Regulatory Common Equity Tier 1 (CET1) ratio strengthened to 17.7 per cent at March 31 (2018: 16 per cent) continuing a long term track record of being profitable and well capitalised while maintaining high levels of liquidity.

Over and above its strong financial performance during the year The Cumberland has also collected a series of awards.

In addition to winning Mortgage Finance Gazette’s ‘Regional Building Society of the Year’ award for the fifth year in succession, it also collected Moneyfacts’ ‘Regional Lending Provider of the Year’ and Feefo’s Gold Trusted Service award, which recognises businesses that deliver exceptional customer service, based solely on feedback from its customers.

Commenting on the year, Des Moore, The Cumberland’s chief executive, said: “This is a very exciting time for our business.

"We have a series of challenges ahead of us including some uncertain market conditions as a result of a variety of economic and political pressures.

"However, we have strong foundations, a brand which continues to be valued highly by our members and a team of great people who are committed to providing excellent customer service.

"We will become a more focused and agile mortgage and savings provider that our customers, our communities and our people are proud of.”