Hinckley & Rugby Building Society reports year of growth

The annual results published by Hinckley & Rugby Building Society has revealed robust growth in its mortgage lending and savings balances. 

In the year to the end of November 2016, Hinckley & Rugby witnessed a 34% rise in mortgage advances, up from £128m in 2015 to £172m last year. This year also started with a bigger pipeline of mortgage business, standing at £55.5m. 

What's more, the overall mortgage book increased by 14% in the year to £540m, nearly three times as high as the 5% increase witnessed the year before. 

The building society's net interest margin was pretty much unchanged, 1.17% compared to 1.20% in 2015.  Net interest income, meanwhile, rose from £6.74m to £7.08m. Profit for the year, before tax was deducted, also grew from £0.18m to £0.34m.

In 2016 Hinckley & Rugby's buy-to-let advances remained the same (£29 million), accounting for an unchanged 18% of the total mortgage book. 

The year to November 2016 also saw savings balances increase by £34m to £521.3m, with more than 90% of the building society's members residing within its core branch area. 

“We aim to have a successful business which has a sustainable level of profitability and a growing member base, because we are seen as a relevant and natural choice locally and a preferred choice for selected mortgage intermediaries,” Chris White, Chief Executive of Hinckley & Rugby Building Society, commented.  

“Over the next three years the Society plans to use the strength of its capital base to maintain the rate of growth in its residential mortgage book in order to improve its cost income ratio and its profitability.”

Colin Franklin, Chairman of the Society, added: “The directors remain confident that the Society’s high quality balance sheet, robust capital ratios and careful approach to managing risk will continue to underpin its financial strength and place it in a strong position to continue to grow.”