Nottingham Building Society has reported a fall in profits in its full-year results ending 31 December 2019.
The building society reported a £10m profit in 2019, compared with £13.6m in the year before as it aimed to protect saving rates “in these current market conditions.”
Net income also decreased by almost £5m to £50.8m compared with £55.6m in 2018.
David Marlow, Nottingham Building Society CEO, said due to “strong” management action and benefits of new digital delivery, the business reduced its underlying administration expenses by just over 10% to £35.2m.
He said: “There have been a number of market and societal changes that we have had to face into over the past year and I am pleased to report good progress across a range of our activities.
“One of the biggest challenges of 2019 has been to effectively balance the conflicting needs of our savings and mortgage members, in the face of a continued ultra-low interest rate environment and intense mortgage price competition, as the UK ring-fenced banks exerted their influence on the market.”
He added: “The challenge for us here was to respond to falling rates for new mortgages whilst protecting the average rate we pay to our savers.
“This has meant that we have reduced our new mortgage lending, which is down almost 60% from £834m in 2018 to £353m in 2019, whilst continuing to be successful in raising the number of existing borrowers choosing to stay with us when they get to the end of their promotional period. This is something we have achieved well this year, with over 70% of members choosing to stay with us at the end of their initial product term.”