2012 saw healthy results for most building societies, who are now well-placed to benefit from an upturn in the economy and increasing demand for mortgages.
Of the country’s 46 building societies, 35 grew their assets in the 2012 financial year. Although assets across the sector as a whole fell by £2.1bn to £313.3bn, this reduction was due to a £5.4bn decrease in Nationwide Building Society’s assets. If the impact of Nationwide is excluded, sector total assets grew by 2.8% to £122.6bn.
Nationwide still dominates the sector. With its assets of £190.7bn, it represents nearly 61% of the sector on its own. In contrast, the smallest building society, the City of Derry, has assets of £42.6m meaning that Nationwide is over 4,400 times its size.