Wales’ largest building society “remains resilient” after posting its annual results which saw assets increase but profit growth decline. Principality Building Society described its annual results as “strong” for the year ending 31 December 2022 despite the ongoing economic uncertainty, recording total assets of £11.3bn, up from £10.9bn in 2021.
Its retail mortgage book also grew by £209m in 2022 and savings balances by £170m. However, the mutual saw profits drop slightly last year, recording an underlying profit before tax of £43.5m, down from £54.4m in 2021, and statutory profit before tax of £49.3m, down from £64m.
The mutual said the reduction in profit was due to “volatility within impairment provisions” created by the economic headwinds, following a £14.8m impairment charge during the year, compared to a £15.4m provision release during 2021. Principality said it will take a prudent view of the economy over the next 18 months.
