Cumberland Building Society lending soars to £2bn

John Hooper

Carlisle-based Cumberland Building Society announced its annual results on Wednesday showing its total residential lending increased to £2 billion including £377 million of gross new lending during the year.

“The society’s positive performance was assisted by recording the highest level of business mortgage approvals in its history,” said Cumberland.

“This helped continue the growth in its commercial lending book, which rose by 8.1 per cent in the year to £179m.”

The building society recorded a profit before tax of £8.3 million and a net inflow of funds of £44 million.

The Cumberland completed the repayment of £130 million of funding from the Bank of England ahead of maturity dates, and its regulatory common equity Tier 1 ratio (CET1) strengthened to 19 % from 17.6%.

Cumberland chairman John Hooper said: “Set against a backdrop of significant and necessary reinvestment, this is a solid performance …

“In the face of extraordinarily tough economic, political and health challenges, the Cumberland has continued to deliver exceptional experiences to its customers and members.

“We remain profitable and well capitalised, and so now, as throughout our 170 year history, we offer the strength and stability our customers expect, with the capacity and capability to successfully support them, our communities and our people as we navigate these difficult times together.”

Cumberland CEO Des Moore said: “These are good results for our business, and they have been generated as we begin our investment in our society for our members today and in the future.

“We are significantly improving our capability and capacity for change by developing our people and bringing new skills into the business, and we have commenced a number of projects that will help us achieve longer term sustainability.

“Looking ahead, much of this year will be focused on continuing to support our customers, communities and people through the coronavirus pandemic and the subsequent recovery.

“This is a challenging time for all of us, but I have no doubt that together we will emerge stronger and wiser and with a much brighter future ahead of us.”