West Brom upbeat despite mortgage fall

The West Bromwich Building Society, which will move into its new head office in the town in the new year, saw a £5 million fall in gross residential mortgage lending in the first half of its financial year.

Chief executive Jonathan Westhoff said while lending was down from £300m to £295m for the six months to the end of September, the 166-year-old society was on track to beat last year's full year lending figure of £446m.

The West Brom's profit before tax was flat at £6m and members' savings balances grew from £3.99 billion a year before to £4.05bn

Its net interest margin also improved to 1.08 per cent from 1.05 per cent.

Mr Westhoff said: "These results demonstrate a sound performance, with the West Brom's profit levels maintained year on year."

The society now employs 740 across its operation which takes in 37 branches and Mr Westhoff said the key to the society's success was that it delivered great service.

Arrears levels for mortgages issued since the society re-entered the market in 2012 are negligible and none of these accounts are currently at three months or more in arrears.

For savings members its has kept its offering competitive through a range of branch, direct and internet accounts.

Savers are also making use of the current opportunities for tax-free saving, with an increase of just over 15% achieved in ISA balances amongst members.