Cumberland reports modest profit as it celebrates 175th anniversary and makes significant investment
The Cumberland Building Society has reported healthy financial results as it celebrates its 175th anniversary and continues to grow its savings and mortgages balance sheet, ending the year at a record high of £3.33bn.
Mortgage lending rose by 6.6 to £2.76bn while savings balances climbed by 7.1% to £3.01bn.
The Society, which made excellent progress as it continues delivering its transformation programme and investing in a sustainable future, continued to deliver on its promise to offer a banking experience that is “kinder to people and the planet”.
As expected, 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.
Writing in the annual report, new chair, Jackie Arnold, 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.”
Its statutory pre-tax profit of £1m compares with £9.6m in 2023-24. Operating profit reduced from £27.4m to £20m as high inflation and falling interest rates squeezed margins.
The Cumberland is Cumbria’s largest financial institution with 31 branches across Cumbria, Northumberland, Lancashire and southwest Scotland.
Other highlights of the financial year included the reopening of the extensively renovated flagship English Street branch in Carlisle and the refurbishment of branches in Preston and Egremont.
The Society retained its Feefo Platinum Trusted Service Award for the fifth consecutive year and was rated by Best Companies as one of the best largest employers in the UK with the highest possible three-star “world class” accreditation.
As part of its continued community giving, The Cumberland donated £250,000 for its Kinder Kind of Kitchen initiative to help tackle food poverty. The Society also continued to provide free teaching resources for schools with its financial education partner EVERFI, and made another donation to Cumbria Wildlife Trust to support conservation work with endangered red squirrels.
The Cumberland has also been reducing its carbon footprint as it aims to become carbon neutral in operations by 2030.
Chief executive, Des Moore, who is stepping down in the summer of 2026 and supporting an orderly transition to new leadership, said that The Cumberland’s enduring success was built on its community ethos and the mutual model where it is owned by members, its savers and borrowers.
He added: “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.”
Unusually for a building society, The Cumberland offers current accounts to its customers, provides commercial lending to businesses and has a car finance subsidiary. Business lending increased but slowed year on year as the hospitality sector struggled with higher costs. The Society is currently expanding its business lending into other carefully chosen sectors.
The Cumberland’s annual general meeting takes place on 22nd July at Cumberland House. The Society donates £2 to good causes for every vote cast at the AGM, whether in person or online.