PENRITH Building Society increased profits, mortgage lending and savers’ balances in 2015 as assets topped £100 million for the first time.

Its accounts show that pre-tax profits jumped by 34.9 per cent to £200,724.

The mortgage book increased from £69.62m to £74.62m, and has grown by 44 per cent since 2011, although new lending fell from a record high of £23.13m in 2014 to £18.12m as the housing market slowed.

The society was still able to advance 171 mortgage loans, however, and at the year-end only one loan was more than 12 months in arrears.

Savers’ balances also grew, by 5.3 per cent, to £89.27m.

Chief executive Amyn Fazal said: “We are very proud of this performance. Passing £100m of assets is a reflection of society’s standing and we would like to thank all our members for their continuing support and loyalty.”

The year saw the Penrith refurbish its head office in King Street, Penrith.

The main office and cashiers’ desks were realigned, consultation areas added along with new signage, lighting and furnishings. Mr Fazal said the new look had been “very well received” by customers.

The refurbishment costs contributed in an increase in management expenses, which include depreciation, from £1.23m to £1.38m. The average number of employees remained constant at 21.

Looking ahead, the society continues to invest in technology, and has plans to allow mortgage applications to be made online, and to offer online access to savings accounts by the end of 2016.

The annual directors’ report says: “Further new product launches to refresh our range are planned in 2016, in our ISA range in particular, for the benefit of both existing and new customers.”

The directors say that the mortgage market remains “very challenging” with mortgage rates – and savings rates – depressed by the supply of cheap capital through the Government’s Funding for Lending scheme.

Their report says: “The society cannot ignore the market it operates in and so the board will continue to keep a close eye on its interest rate structure in both the savings and mortgage market.”

The society does not expect the Bank of England to raise interest rates until much later in 2016, or even 2017, and it anticipates that inflation will remain very low.

The directors’ report adds: “Housing market transaction volumes appear more subdued than a year ago and this will probably continue in 2016.”