NELSON-based Marsden Building Society made after-tax profits of £0.31 million last year, the annual results reveal.
The report to members says the year saw the Russell Street-based society target lower profitability to ensure a greater return of value to members.
Over the 12 months, the society’s reserves increased by £0.31m to £31.4m, while mortgage lending rose to £49.9m from £39.5m in 2010.
A new retail outlet was opened in Windermere, increasing the society’s number of outlets to 11.
Chief executive Rob Pheasey said: “The economic uncertainty continued during the year with conditions in the UK economy typified by rising unemployment, a subdued housing market and continuing low interest rates.
“The Marsden has not been shielded from the impact of these economic conditions within our funding and lending activities, but we have maintained our financial strength supported by one of the strongest capital positions of any UK building society, high levels of good quality liquid assets and high credit quality.
“I fully expect 2012 to be every bit as challenging as the year just passed, for the economy, for UK banks and building societies, and for savers and borrowers.
“Growth will not be a priority, our focus will continue to be on our financial stability, maintaining our capital strength and balancing profitability with the delivery of value to members.
“The importance we attach to the traditional mutual model, one that is trusted and understood by our members, will continue to underpin but not impede the progress we must continue to make in modernising the society.
“By continuing to focus on serving our members’ interest and by protecting the financial strength of the society, we remain confident about our future as an independent mutual building society.”