BOURNEMOUTH-headquartered Portman Building Society has seen its assets leap by 20 per cent to £21 billion.

Portman reported a record pre-tax profit of £93.7 million for 2006 in its last full year results before its impending merger with Nationwide.

It is the 10th consecutive year of profit growth for Portman which reported:

  • savings balances up 18 per cent to at least £13 billion;
  • new residential lending up 18 per cent to £5 billion;
  • 70,000 new customers.

Chief executive Robert Sharpe said: "2006 has been a year of outstanding success. The society has recorded exceptional growth.

"We have also clearly answered those in the sector who have repeatedly questioned Portman's ability to generate profitable and aggressive growth."

Portman's £21 billion assets currently make it Britain's third largest building society after Nationwide (£120.5 billion) and Britannia (£32.4 billion).

On April 23, Portman's 1.8 million members will vote on a planned merger with Nationwide.

For the merger to go ahead, 50 per cent or more of Portman borrowers and 75 per cent or more of Portman savers have to vote yes'.

Portman mortgage borrowers would each receive flat rate windfalls of £200 before tax if the merger were to go ahead.

Qualifying savers would receive windfalls of at least £200 on a sliding scale, based on how much money is in their accounts - up to a maximum yet to be announced.

To qualify, savers must have had at least £100 in their accounts as at September 11 2006.

Savers with more than one account would a receive a windfall based on the balances of their accounts added together.

The planned merger was first announced last September after months of secret negotiations between the two societies.

Portman staff in key departments in Bournemouth are facing redundancy with their roles transferring to Swindon and Northampton.

But new roles would be coming to Bournemouth - making the merger number-neutral in terms of jobs for the Bournemouth economy, says Portman.