Major Investment Planned for Future Banking Services
The Cumberland Building Society has announced one of the largest investments ever made by a Cumbria-based business.
The Carlisle-headquartered society invested £26.3 million in its core technology platform transformation in the year to March.
The work is part of a much larger £80 million to £100 million investment programme.
The Cumberland says the project will give the society a modern, resilient, cloud-based banking platform, which is due to go live during 2027.
Why the Investment Is Being Made
The Cumberland said the investment is designed to strengthen the organisation for the future.
Writing in the annual report, new chief executive Stuart Miller said the money would help make sure the society is “here for the long haul”.
He described the project as a major commitment, but said it was “money well spent”.
The new platform is expected to support the society’s banking services and improve its long-term resilience.
Financial Results Show Growth
The Cumberland’s latest financial results show operating profit, excluding transformation costs, stood at £10.6 million.
Mortgage lending increased to £2.89 billion, while savings deposits rose to £3.17 billion.
Both were record figures for the society.
The Cumberland’s balance sheet also reached an all-time high of £3.46 billion, while mortgage arrears remained well below the industry average.
Planned Loss Due to Investment Costs
The scale of the technology investment meant The Cumberland recorded a statutory pre-tax loss of £12.2 million.
Chair Jackie Arnold MBE said this had been planned for and was supported by the society’s reserves.
She said the investment would help strengthen The Cumberland’s long-term resilience.
The society said the result reflects the cost of major transformation work rather than weakness in day-to-day trading.
Branch Network Still a Priority
The Cumberland continues to operate 31 branches across Cumbria, southwest Scotland, Northumberland and Lancashire.
In 19 communities, from Langholm to Ulverston, it is now the only provider of high street banking services.
The society said it remains committed to its branch network at a time when many banks have reduced their high street presence.
Refurbishments at Carlisle Rosehill and Annan were completed during the year. The Barrow branch has also been upgraded, with Whitehaven next in line for a major refurbishment.
Stuart Miller said customers value The Cumberland’s continued presence on the high street.
He said he understands how important local financial services are to communities.
Business and Mortgage Lending Continues
The Cumberland offers personal and business current accounts, as well as lending to businesses.
The society reported continued growth in residential mortgages. It also grew holiday let lending and broadly maintained commercial lending.
New secured loans were provided to businesses including retailers, care homes and the hospitality sector.
Borderway Finance, The Cumberland’s car finance subsidiary, also reported growth.
Community Work and Awards
The annual report also highlighted The Cumberland’s community work.
The society achieved B Corp certification, retained its Feefo Platinum Trusted Service Award for the sixth year in a row, and improved its position in the Best Companies rankings.
Former chief executive Des Moore was also named Business Leader of the Year at the in-Cumbria Awards.
The Cumberland said it remains on track to be operationally carbon neutral by 2030.
It has donated £675,000 over the last three years to its Kinder Kind of Kitchen partnership, which supports work to tackle food poverty.
The society also donated £22,000 to Cumbria Wildlife Trust in the final year of a three-year partnership to protect endangered red squirrels.
Its affinity savings accounts raised £55,196 for Cumbrian hospices.
AGM to Take Place in July
The Cumberland’s annual general meeting will take place on Tuesday, July 21, at its head office in Kingstown, Carlisle.
The society donates £2 to good causes for every vote cast at the AGM, whether members vote in person or online.
Last year, the Pledge for Votes scheme raised £16,162.
This year’s beneficiary is Time to Change West Cumbria, a community interest company that works to tackle homelessness.
