THE PROGRESSIVE Building Society, the North’s largest locally-owned financial institution, has bucked a trend by reporting healthy pretax profits of £3.1 million for 2010.
Latest financial results show the Belfast-headquartered society is in a unique position compared to many of its key competitors, including the likes of Northern Bank, Bank of Ireland and AIB-owned First Trust.
Progressive, which is one of the North’s major mortgage lenders, has remained profitable throughout the banking crisis. Last year it succeeded in doubling its pretax profits from £1.5 million in 2009 to £3.1 million despite operating in what it described as “difficult market conditions”.
The building society was the only financial institution of any size in the North to remain in the black last year. Progressive, which was formed in 1914, prides itself in being rooted in its local community and promotes “fairness” in dealing with its members.
The society grew the value of its total assets to £1.666 billion last year, while its savings balances rose by £36.3 million to £1,484.6 million in 2010.
However, its latest annual report and accounts also show the building society was not immune to the downturn in the property market. It fell short of its targets for gross lending last year and the value of its new mortgage advances fell by 24 per cent to £107 million.
It also set aside a further £4.2 million in 2010 against potential bad debts, bringing total provision for emerging losses to £5 million. It said last year it “applied a prudent lending policy” combined with “a sympathetic and efficient arrears procedure” so arrears were kept to a minimum.
Its latest annual report shows 31 mortgage accounts were 12 months or more in arrears at year-end, and the total amount outstanding on these accounts was £5.4 million, including arrears of £377,000.
The society’s provision for losses on all loans and advances to customers by year-end represented 0.39 per cent of its total mortgage book.
Dr Joan Smyth, chairwoman of Progressive, said the society’s level of arrears in its mortgage book remained much lower than reported for the sector as a whole.
