Principality Building Society mortgage balances rise to £11.3bn in H1
The mutual, which now supports 89,867 homeowners, helped 3,195 people onto the property ladder during the period, compared with 4,033 first-time buyers in H1 2025.
Principality Building Society increased its mortgage balances to £11.3bn during the first half of 2026, up from £11.1bn at the end of 2025.
The mutual, which now supports 89,867 homeowners, helped 3,195 people onto the property ladder during the period, compared with 4,033 first-time buyers in H1 2025.
Principality also committed £73m of new housing association lending, up from £15m in the same period last year, and agreed funding with property developers to support the delivery of 352 new homes, compared with 55 a year earlier.
Its commercial lending book stood at £864m, alongside further commitments of almost £300m, while the society expanded its presence in the English housing association market through a £30m lending agreement with Plus Dane Housing.
Iain Mansfield (pictured), chief executive officer of Principality Building Society, said: “In the face of a challenging market, we continue to listen to and respond to our brokers and customers’ feedback, which has meant that we have been able to take a more focused and distinctive approach to our lending, helping more people access finance for their homes, responsibly.”
The society reported underlying profit before tax of £22.2m, broadly unchanged from £22.5m in H1 2025, following a £5.6m impairment provisioning charge in response to the weakening economic outlook.
Net interest margin increased to 1.27%, from 1.17% a year earlier, while net operating income rose by £4.7m to £86.2m.
Operating expenses stood at £60.2m, compared with £59m in June 2025, while total assets increased to £14.1bn from £13.9bn at the end of 2025.
The society’s capital ratio increased to 19.2%, from 18.7% at the end of last year, while its liquidity ratio remained at 13.6%.
Savings balances stood at £11.5bn, compared with £11.6bn at the end of 2025.
Principality said it paid savers an average rate of 3.52% compared with a market average of 2.82%, resulting in £33m of additional interest being paid to saving members between January and May.
Mansfield added: “The first half of the year has been dominated by continued geopolitical uncertainty, with conflict in the Middle East creating volatility across financial markets and influencing expectations for future Bank of England base rate changes.
“These external forces have contributed to a challenging operating environment for households and businesses across the globe.
“Despite this backdrop, the Society delivered solid financial performance, while maintaining a strong capital and liquidity position, all while managing our costs and taking deliberate decisions that strengthen the Society for the long term.
“Strong and sustainable income is what allows us to continue investing in the future of the Society, while delivering value for Members today.”
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