Cumberland Building Society reports £1m pre-tax profit as it marks 175th year

Yahoo

04-06-2025

Cumberland Building Society has reported a pre-tax profit of £1 million for the 2024/25 financial year.
This comes as the society is marking its 175th anniversary and continues its investment in a transformation programme.
According to a spokesperson for the firm, the reduced profit levels "reflect the significant investment made on New Cumberland, a project seeing the Society invest in a resilient, future-proof banking platform which will ensure it continues to meet evolving customer needs alongside the personal touch that sets The Cumberland apart."
Jackie Arnold, the society's new chair, said: "We previously stated that the investment in New Cumberland would be reflected in profitability for the next two or three years and that has been the case this year.
"However, thanks to the strong performance of the business, we're delighted to say we were in fact profitable.
"Your board is convinced that working on New Cumberland is the right decision and the best way to secure the society's long-term future."
Despite the lower profit, The Cumberland reported record balance sheet growth, ending the year with total balances of £3.33 billion.
Mortgage lending rose by 6.6 per cent to £2.76 billion, while savings balances increased by 7.1 per cent to £3.01 billion.
Operating profit fell from £27.4 million to £20 million, impacted by high inflation and falling interest rates.
Des Moore, chief executive of The Cumberland, said the society's strength was rooted in its mutual model.
Mr Moore said: "We have no external shareholders demanding a quick return on capital.
"This enables us to take long-term decisions in the best interests of members.
"I am genuinely excited by the potential of the society to do good and achieve more.
"We have a promising future as well as an illustrious past."
The Cumberland operates 31 branches across Cumbria, Northumberland, Lancashire, and southwest Scotland.
Notable developments during the year included the reopening of its refurbished English Street branch in Carlisle and renovations to branches in Preston and Egremont.
The society also retained its Feefo Platinum Trusted Service Award for the fifth consecutive year and was recognised by Best Companies as one of the UK's best large employers, earning a three-star "world class" rating.
The Cumberland, which promises a banking experience that is 'kinder to people and the planet,' also donated £250,000 to its Kinder Kind of Kitchen scheme, which aims to combat food poverty.
It also continued to support schools with free financial education resources through its partner EVERFI and made another donation to Cumbria Wildlife Trust to help protect endangered red squirrels.
The society is also working to reduce its carbon footprint, and is currently aiming to become carbon neutral in its operations by 2030.
Somewhat unique for a building society, The Cumberland offers current accounts, commercial lending, and car finance services.
Business lending grew during the year but at a slower rate, with the hospitality sector affected by rising costs.
According to the society, is now expanding its business lending into other sectors.
Mr Moore is set to step down in the summer of 2026, and the board is beginning the process of finding his successor.
The Cumberland's annual general meeting is set to be held on July 22 at Cumberland House.
For every vote cast at the AGM, whether in person or online, the society will be donating £2 to charitable causes.