Profits at Bath Building Society grew by more than 10% last year and its reserves by nearly 14% despite historic low interest rates.
The mutual society’s mortgage book increased by nearly 4% to a record high of £226.9m with gross mortgage lending up £3.5m at £40.9m.
Assets rose by 4.8% to £292.6m, with reserves up 13.7% to £26.8m year on year. Pre-tax profits increased by 10.3% to £4.1m. 
Chief executive Dick Jenkins said: “The society continues to be committed to offering its best rates to existing savers.
“The continuation of ultra-low bank base rates means that the market remains stacked against savers although the Government has given them a break with the new personal savings allowance that is coming in on April 6 this year.
“Also the Government has announced initiatives in the recent Budget which will benefit long-term savers with the Lifetime ISA.”
The mortgage business continued to benefit from its specialist positioning, which had allowed it to build its reserves through increased levels of profitability without increasing its risk profile, said Mr Jenkins.
Its mortgage book growth was largely achieved through a focus on its niche products for the market, such as our Parent Assisted Mortgages, Buy for Uni and Rent a Room Mortgages.
“We have generated real interest through our innovative approach to lending to this group and our commitment to helping people in Bath and further afield to buy homes,” said Mr Jenkins.
Established in 1904 to offer savings, investments and mortgages to the local community, Bath Building Society today has more than 10,000 savers, 1,200 mortgage customers and employs around 50 staff.
