31 March 2008
Saffron Building Society reports strong year-end growth
Saffron Building Society has reported strong lending, savings and profit growth in 2007 despite it being one of the most turbulent on record for the financial sector.
With mortgage growth of 13%, retails savings growth or 14% and profits of £3.2M, 33% up on 2006, Saffron's asset size at the end of the 2007/08 financial year now stands at £784M. A further £1.1M was realised from the sale and lease back of its branch premises in Stratford resulting in total group profits of £4.3M.
Chief Executive Andy Golding said: "I am extremely pleased with our performance in 2007. The financial market has clearly been troubled, but we have delivered good growth and strong profitability whilst maintaining a high percentage of liquidity for future business.
"This has been achieved by relentlessly following our strategy of developing competitive products and striving to deliver excellent customer service, which our members tell us time and time again they value most."
"We have also continued to enhance our customer proposition, through the launch of Saffron Insure and Saffron IFA. These products provide our members with independent advice and value for money in increasingly complex and confusing markets and the take-up so far has been very encouraging."
He added that customer retention and satisfaction at the Society remains strong with more than 85% of customers surveyed being very or extremely satisfied.
However, Mr Golding also warned that there were tough times ahead for borrowers in the wake of the credit crunch.
"Many lenders have left the market and others have tightened their lending criteria, making it more difficult for people with limited funds or a bad credit history to get onto the housing ladder.
"People planning to take out a mortgage in 2008/09 would be well advised to build up a track record of saving regularly and to ensure that they have a clean credit record if they want to have access to the funds they need."
