The Tipton Reports Another Year of Strong Performance

Adam Evetts
Posted on by Adam Evetts

2023 was another successful year for the Tipton & Coseley Building Society despite the challenging economic conditions.

The Tipton achieved mortgage book growth of 11.3%, with gross mortgage lending reaching £116m (2022: £108m), the highest ever achieved. Total assets as at the year-end stood at £603m (2022: £540m), an increase of over 11% and the third successive year of double digit asset growth. Rising interest rates supported another strong profit performance with profit before tax of £4.3m (2022: £4.8m). As a mutual organisation profit is used to reinforce the Society’s strong capital position and to support future investment and mortgage lending rather than paying dividends to shareholders.

The net interest margin increased to 2.46% (2022: 2.24%) even after paying better rates to savers and protecting variable rate mortgage customers from the full rise in Base Rate. Savings members have benefitted from savings rates 1.32%* above market average rates over the year. The Tipton’s approach resulted in the Society attracting £51m in new savings balances from both existing and new members. For borrowers on variable rate mortgages the Tipton has again been measured in its approach to increasing its Standard Variable Rate during the year, restricting increases to 1.6% compared to a 1.75% increase in Bank Rate.

During the year the Society supported the local community by making charitable donations of £47,705, including £9,000 to the Midlands Air Ambulance and £12,000 to the Black Country Foodbank, and pledging a further £12,000 to the Foodbank in 2024.

Adam Evetts, our chief executive, said: “2023 was another incredibly successful year for the Society despite the economic and market conditions, and we remain focused on our principle purpose of helping members to own a home at all stages of life, and to help them save for the future.

Our record levels of mortgage lending and strong savings inflows demonstrate our belief that offering customers fairly priced products and great customer service pays off. I’m looking forward to developing these areas further, with us embarking on a number of significant projects in 2024, and seeing the Society grow from strength to strength as a regional building society.

Our success during 2023 would also not have been possible without the support and commitment of all our colleagues and members, and our important relationships with mortgage brokers. My thanks go to everyone involved; they’ve played a vital role in our successful year.

As a Society, we are financially strong and well positioned to respond to any economic uncertainty and will continue to take opportunities as they arise.

Thank you for your continued support.”

*Source for 1.32% benefit above market average rates: Bank of England Database