Principality Building Society has reported a "strong financial performance" in its interim results despite a challenging first half of 2022.
Wales' largest building society reported that its net retail mortgage lending for the first six months to 30 June 2022 reached £99.3m (up from £24.7m in June 2020).
Retail mortgage balances were at £8,132.6m, up from £8,033.3m recorded in December 2021, while savings balances remained consistent at £7.9bn.
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However, the society recorded total assets of £10.5bn, a slight drop from £10.9bn recorded in December 2021.
Pre-tax profits reached £31m, down from £33.1m in the same period last year. Underlying profits also fell slightly to £26.1m this year from £28.6m in H1 2021.
More than £2.5bn mortgage applications were processed through the Principality's new mortgage platform, with the mutual reporting that applications are being processed faster than before giving the business "a great platform for the future".
Principality described its interim results for 2022 as “strong”, and said it will continue to invest profits to support members, communities, and colleagues through the cost of living crisis.
Principality Building Society chief executive Julie-Ann Haines said: "As a building society owned by our members, we are not under pressure to meet the short term needs of shareholders.
"Our aim is to focus on the long term and invest to support the future growth of the Society and support our members. Our financial performance was strong in the first six months, with £99m net growth in our mortgage book as we helped almost 2,000 first-time buyers get a home.
"So members can be assured we have a strong balance sheet and profitability to reinvest in the business for their benefit, to help us create better homes for members, help members to financially secure their futures, as well as trying to create a fairer society for our communities.”
Principality, which is the 6th largest building society in the UK, also reported strong capital with a common equity tier 1 ratio of 30.79% (up from 30.70% in H1 2021). Net interest margin was recorded at 1.32%, up from 1.14% on the previous year.
Ms Haines said: "It has been a challenging first half of the year with the cost of living crisis, and the political upheaval both at home and abroad, continuing to bite. I’m pleased to say that due to our strong first half financial results, we have been able to focus our efforts on supporting our colleagues, members, and communities, to try and reduce their worries about the current challenges.
“As inflation has increased this year, we have worked hard to balance the differing needs of our mortgage and savings customers, passing on just a quarter of the Bank of England one per cent base rate rises to our variable rate and discount mortgage members. Most of our members who save with us have benefited from at least three rate increases, ensuring we are offering competitive returns for our savers as interest rates rise."
She added: "Last month, Principality colleagues received an extra £1,000 to help them with the increasing cost of living, as food, fuel and energy prices increase significantly. As our headquarters in Cardiff opened, we introduced an innovative, fully hybrid working model which means colleagues can now work from around the UK or in the office, whatever suits their circumstances best.
"To give our members, colleagues, and communities more certainty, we also made a promise this year to keep open our branches in all the towns and cities we currently operate in Wales and England until at least 2025, so that we will retain a presence on the high street."
The society invested around £500,000 in the first half of this year into projects with a social purpose.
It has given £117,000 in financial aid to community grants across Wales via its Future Generations Fund. It has also donated £100,000 to charity partners Ty Hafan and Ty Gobaith Hope House children's hospices.
Earlier this year the organisation donated £20,000 to the Disasters Emergency Committee (DEC) for the conflict in Ukraine, as well as offering up to five homes to accommodate and support Ukrainian refugees who have been displaced.
In April it received carbon neutral status and hopes to reach net zero in its operations by 2030.
Last month it was ranked first among the best companies in the UK for women to work at.
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