The Tipton & Coseley Building Society reports financial results

The Tipton have announced results for the financial year ended 31 December 2024, reporting another year of record mortgage lending and healthy retail inflows. 

Highlights of the 2024 financial year include: 

- Mortgage book growth of 10%, with gross mortgage lending reaching £120m (2023: £116m), a record achievement for the second consecutive year

- An increase of over 13% in the mortgage retention rate for existing borrowers

- Total savings balances reached record levels of £524m (2023: £479m); increase of £42m in retail deposits year on year

- Our savers benefited from savings rates 1.45% above market average rates

- Profit before tax of £2.3m (2023: £4.3m).

- Continued support of job creation in our local area; 19 new colleagues recruited, bringing the Society's total headcount to 120

- Combined charitable donations of £58,000 to causes including Midlands Air Ambulance Charity, Black Country Foodbank and four individual charities chosen by our colleagues

- An estimated 160 hours spent by our teams volunteering in the community.

Adam Evetts, Chief Executive, commented: 

"We have, once again, delivered a very positive set of results, offering consistent value to our customers and helping them achieve their most important financial goals.

Our performance is testament to our clear strategic focus and is particularly impressive given the challenging economic environment and intense competition within the financial services sector.

Tighter margins across mortgages and savings, coupled with the need for increased investment in our core processes and people, have contributed to a reduction in underlying profitability. Nevertheless, our capital position remains very strong and we are well placed to continue the positive progress of recent years.

Furthermore, our status as a building society means our full attention will always be on delivering good outcomes to our customers, rather than maximising profits for shareholders. Playing an important role in our community is also central to who we are as an organisation, and it’s fantastic that we have been able to donate £58,000 to local good causes during the year.

The growth in our mortgage balances reflects our efforts to provide innovative products and competitive borrowing rates. We have increased our focus on shared ownership and entered the expat residential market. An improved approach to borrower retention means more customers are now staying with us after their initial product term has ended.

While the high cost of living is still putting pressure on people’s finances, many customers on our variable rate mortgages felt the benefit of long-awaited cuts in Bank Rate through reductions in their monthly repayments.

In order to fund lending activities, we need to continually increase savings balances and we offer good value to our customers through a variety of fixed and variable rate savings accounts designed to help them grow their investments. 

Customers have choices in how they save, with access to local branches, postal and telephone services, plus our digital savings app. Recent enhancements to the information and tools available on our website are also making it easier for customers to engage with us.

Our success in 2024 would not have been possible without the support and dedication of our colleagues. We all share the same belief that customers must be at the heart of everything we do and work hard to make our Society a thriving mutual organisation with its roots firmly embedded in the Black Country."