THE Cumberland Building Society has published its annual report, highlighting its continued commitment to supporting customers and communities through its ‘kinder banking’ purpose.

The society reported a strong year, with healthy growth in mortgage lending, savings balances, and profitability, underlining its position as the region’s leading mortgage and savings provider.

Mortgage lending increased to £2.37bn, while deposit balances grew to £2.61bn.

Profit before tax rose to £26.6m, with over half of those profits resulting from interest rate swaps taken out to protect against an unexpected rise in interest rates.

Despite the unpredictable year, the report suggests the building society remains safe, resilient, and well-positioned to meet future challenges.

Chair John Hooper said the society had performed 'exceptionally well' despite a volatile year for financial markets and the UK economy.

“Looking ahead, we face multiple challenges that are likely to squeeze profits over the next two or three years. 

“Higher inflation, at levels we haven’t seen since the 1970s, is impacting everyone and like everyone our costs are increasing. 

“There are also signs that the housing market is slowing, which will inevitably affect the level of mortgage lending," he said. 

As a mutual organisation owned by its members - savers and borrowers - The Cumberland was quick to raise interest rates for savers as the Bank of England’s base rate increased repeatedly during 2022-23. 

Chief executive Des Moore said that higher interest rates presented an opportunity for the Society to live up to its slogan of ‘kinder banking’. 

"To reassure borrowers, we’ve pledged to give those coming to the end of fixed-rate terms preferential deals on new products and we’re on hand with specialist advisers if any of our borrowers experience financial difficulty.”

The Society donated £205,000 to charitable causes in 2022-23 and pledged to donate £2 to FareShare Lancashire & Cumbria for every vote received at its annual general meeting.

The society was awarded nationally as one of the best companies for customer experience, as well as being recognised as one of the 'best large companies in the Northwest to work for' by Best Companies.

"Going forward, the way we deliver services will continue to evolve but one thing remains constant. 

"The Cumberland began its life with an ethos of kindness rooted in community. That has always been the case and always will be," Mr Moore said.