Principality Building Society reports first-half results as member value reaches £33m

Daniel Bevan - Editor

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Principality Building Society has reported a solid first half of 2026, with the Welsh mutual returning £33m in value to members through above-market savings rates during the first five months of the year.

The UK’s sixth-largest building society and Wales’ largest customer-owned business said it had delivered a resilient performance despite a challenging economic backdrop, while laying the foundations for long-term investment and transformation.

Total assets rose to £14.1bn at the end of June, up from £13.9bn in December 2025, while net interest margin increased to 1.27%, compared with 1.17% a year earlier.

Net operating income also increased to £86.2m, from £81.5m in June 2025.

Retail mortgage balances rose by £200m to £11.3bn, while savings balances remained broadly stable at £11.5bn, compared with £11.6bn at the end of 2025.

Statutory profit before tax fell to £19.6m from £21.9m in the first half of 2025. Underlying profit before tax was broadly unchanged at £22.2m, compared with £22.5m a year earlier.

The Society’s Common Equity Tier 1 capital ratio strengthened to 19.2%, up from 18.7% at the end of 2025.

Customer experience also improved, with its score increasing to 73.8 from 70.8 in December. Broker experience remained strong at 83.6, compared with 84.1 previously.

Iain Mansfield, Chief Executive Officer of Principality Building Society, said: “I am pleased to report that Principality has delivered a solid set of results in the first half of 2026, as we seek to deliver on our purpose of building a society of savers, where everyone has a place to call home.

“The first half of the year has been dominated by continued geopolitical uncertainty, with conflict in the Middle East creating volatility across financial markets and influencing expectations for future Bank of England base rate changes.

“These external forces have contributed to a challenging operating environment for households and businesses across the globe.

“Despite this backdrop, the Society delivered a robust financial performance, while maintaining a strong capital and liquidity position, all while taking deliberate decisions that strengthen the Society for the long term.”