Bath Building Society has confirmed a slight dip in pre-tax profits from £2.3 million in 2011 to £2.2 million in 2012.
Assets, however, rose to £270 million from £252.8 million in 2012, a 6.8% increase, with a 9.6% increase in its reserves from £17.0m to £18.7m year on year.
Dick Jenkins, chief executive, said the mutual had witnessed strong growth in its mortgage book which increased by 5.2% in 2012 to £193.4 million.
He explained: “This growth has largely been achieved through focusing on specialist segments of the market, such as self-builders.”
However, Jenkins warned of challenging market conditions such as a stuttering economy, weak demand for housing finance, flat house prices and continued levels of record-low interest rates.
Jenkins said: “We have increased our savings book in 2012 from £234.5m to £250.1m; a rise of 6.7%. This reveals that we remain competitive in the market and are able to attract new savings accounts in these difficult times.
“We are more determined than ever to demonstrate that we do things very differently to the major banks. A very good run of results in recent years which has continued into 2012, suggests that this different approach is being appreciated by our members”.
Bath Building Society, established in 1904, is the only independent building society with its headquarters in the South West.
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