Principality Building Society Reports Record Growth

Principality Building Society has reported a record-breaking year for 2024, achieving strong financial growth while remaining committed to its Members, communities, and long-term strategy. Despite ongoing economic challenges, the Society has successfully expanded its mortgage lending, encouraged regular saving habits, and invested in both its digital services and high street presence.

Julie-Ann Haines, Chief Executive of Principality Building Society, highlighted the Society’s unwavering commitment to its purpose despite economic uncertainty.

“At a time when economic uncertainty continues to challenge households across the country, we have remained steadfast in our purpose – to build a society of savers where everyone has a place to call home. We have seen record growth in both savings and mortgages this year, helping more Members to save and more customers to own their own home and are on track to meet our 2030 ambition statements we set out in 2022.”

The Society’s continued success is a result of its ability to balance growth with purpose. Over the past year, Principality has supported more than 8,120 first-time buyers onto the property ladder and now helps over 87,500 homeowners across the UK. This has been made possible through a responsible lending approach, combined with significant investment in housing initiatives.

One standout example is the £25 million in long-term financing provided to Hafod, enabling the construction of 300 affordable homes in Wales over the next five years. Additionally, the completion of The Mill in Cardiff—a decade-long project delivering 800 homes, half of which are designated for social, intermediate, or discounted rent—highlights Principality’s dedication to making homeownership accessible.

“Access to affordable housing remains one of the most pressing challenges of our time. Against a difficult economic backdrop, we are delivering on our ambition for better homes.” – Julie-Ann Haines

Beyond housing, savings growth has also been remarkable. Over the past year, the Society has seen an increase of £1.7 billion in savings balances, with more accounts opened than ever before. This growth ensures that savers’ deposits continue to fund mortgage lending, with over 95% of mortgages supported by these funds. Principality has also demonstrated its commitment to rewarding savers, offering an average rate of 4.06% compared to the high street average of 3.33%, reinforcing its purpose of building a financially resilient society.

“It has never been more important to save for life’s uncertainties. Our role is to get more people saving more regularly and ensure everyone has the tools and support they need to develop positive saving habits—creating a society of resilient savers.” – Julie-Ann Haines

Community engagement remains at the heart of Principality’s operations. The Society has contributed more than £1.5 million through its Future Generations Fund since 2022, supporting local initiatives in partnership with Community Foundation Wales. Financial education has also been a key focus, with more than 50,000 young people benefiting from workshops and resources aimed at building long-term saving habits.

Charitable giving has been another priority, with £245,000 raised in 2024 for Tŷ Hafan and Hope House Tŷ Gobaith children’s hospices, bringing total donations from the three-year partnership to £752,000.

“As a mutual, we aim to tackle big issues at the local level, in the communities we serve. Each year we contribute up to 3% of our profit before tax to causes that benefit communities.” – Julie-Ann Haines

Alongside its social impact, Principality has taken decisive steps to modernise and enhance Member experience. A new website has been launched to improve digital accessibility while ensuring that Members still have access to personal service through branches. This commitment to balancing digital transformation with a strong high street presence reflects the priorities of its Members, who value both convenience and human interaction.

“As a modern mutual, we are led by our Members, who have told us that they value both our strong presence on the high street and the convenience of enhanced digital services.” – Julie-Ann Haines

Financially, the Society remains in a strong position. Total assets grew to £14.1 billion, while retail mortgage balances increased to £10.5 billion. Savings growth has continued at pace, demonstrating the trust Members place in Principality to safeguard and grow their funds.

Although underlying profit before tax was £40.3 million, compared to £60.3 million in 2023, this reflects expected reductions in net interest margin and one-off costs associated with operational changes. Importantly, liquidity and capital positions remain strong, providing a solid foundation for continued investment and sustainable growth.

“As we look to 2025 and beyond, the Society continues to be equipped to navigate the challenging economic and political landscape that we operate in. I am confident the Society will continue to adapt and invest for the long term, with our purpose remaining at the heart of everything we do. Whether it’s helping more people into homes or building financial resilience for life’s uncertainties, we remain committed to supporting our Members, colleagues, and communities for another 165 years.” – Julie-Ann Haines

With a clear focus on its long-term strategy, the Society remains committed to helping more people into homes, supporting savers, and delivering value to its Members. As it looks towards the future, Principality is not just growing—it is shaping a stronger, more inclusive financial landscape for generations to come.