The Tipton & Coseley Building Society has reported lower profits but record savings balances as it begins a multi-year transformation programme.
The mutual posted gross mortgage lending of £107m for the year to 31 December 2025, down from £120m the previous year, as it deliberately constrained new business while implementing a new broker-focused application platform.
Retail savings deposits rose by £53m to a record £577m, compared with £524m in 2024, supported by rates that were on average 1.25% above the market, equating to £6.9m in additional interest for members.
Profit before tax fell to £1.2m from £2.3m a year earlier, reflecting a more stable interest rate environment and investment in infrastructure. During the year, the society also opened a fifth branch in Codsall, its first new location in more than 30 years.
The lender has launched ‘Tipton Tomorrow’, a long-term transformation programme aimed at modernising its operations, technology and customer offering.
TRANSFORMATION AND LENDING STRATEGY
Adam Evetts, chief executive, said: “Despite operating in a highly competitive market, we have achieved good results, while commencing ambitious plans for the Society’s future.
“Financial performance remained robust, though lower than recorded in recent years which had been impacted by the rising Bank Rate environment. This has now abated as interest rates return to more normal levels.
“We have maintained our focus on providing products and services that customers truly value, while carefully managing our net interest margin, improving operational efficiency and keeping tight control over our cost base.
“Importantly, we have started delivery of a substantial transformation plan, Tipton Tomorrow, designed to modernise how we work and help us adapt to changing customer needs.
“The first steps involved developing a new mortgage origination platform to streamline our underwriting practices.
“Once in use, the platform will ensure high levels of customer service, reduce our application to offer times and create capacity for future growth.
“This project accounts for the slight reduction in lending volumes during 2025.
“We temporarily scaled back new lending to protect service standards so teams could focus on delivering such a key infrastructure change.
SAVINGS COMPETITION AND BRANCH EXPANSION
“Tipton Tomorrow progresses into 2026 and beyond, encompassing our IT estate, business processes and branch network.
“It will see us create modern retail and working environments, starting with our Tipton head office which is undergoing a full renovation.
“Competition in the sector remains intense, particularly for savings. Nevertheless, our attractive rates helped us retain existing balances and welcome many new savers.
“We also extended our product range to feature business savings accounts and joined a deposit aggregator platform, connecting us to people who might not traditionally save with the Tipton.
“The trend of mainstream banks withdrawing from the high street continues, however we remain committed to providing branch-based services for our customers.
“We are proud of our achievements and look forward to a milestone year in 2026, when we will celebrate the Tipton’s 125th anniversary.
“Our strategy is defined, built around a clear vision and purpose, so we can continue to thrive as an independent building society, firmly rooted in the Black Country.”
Alongside its financial performance, the society donated £55,000 to charitable causes during the year and contributed an estimated 240 hours of staff volunteering. It continues to pledge up to 5% of profit before tax to community initiatives.
