MARSDEN Building Society saw profits fall last year to £310,000 after tax, from £450,000 in 2010, new figures have revealed.

But the Pendle-based firm said it had targeted lower profitability to ensure a great return of value to its members.

The firm stepped up mortgage lending increase significantly, from £39.5million in 2010 to £49.9million last year, and management said that the support for first time buyers was ‘an important role for a mutual building society’.

However, bosses at the building society, which is based in Russell Street, Nelson, said next year promised to be just as difficult.

Rob Pheasey, chief executive, said: “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.”

Last year the society opened a new branch in Windermere, in the Lake District, taking their total number of outlets to 11.