The mutual says its profits before tax jumped 58% to £5.2 million, compared with a year ago, as many mortgage lenders benefitted from the surge in house buying sparked by the stamp duty tax holiday during the height of the pandemic.

The firm’s total assets increased by 12% to £463.5m in the 12 months to the end of December, compared to the previous year.

It adds that mortgage balances lifted by 19% to £360.9m, driven by a 71% jump in lending to £114.7m.

The business says that savings balances grew by 12% to £44.5m, adding that this “increase in retail savings balances helped to fund the rise in net mortgage lending”.

It also adds that it does not forecast rising inflation will have a “significant negative impact on the society and its business model”.

Inflation is currently 5.5%, well above its 2% target, and is forecast by the Bank of England to peak at around 7.25% in April, due to rising energy and food costs. Although some economists say the conflict in Ukraine will further add to these costs, and may push inflation close to double digits by the end of the year.

Swansea Building Society chief executive Alun Williams says: “The economic environment, particularly the impact of inflation on the UK economy, continues to be uncertain.

“Despite this, we do not believe that it will have a significant negative impact on the Society and its business model.

The society will continue to be resilient in meeting future challenges such as potential further interest rate increases along with the increased cost of living and inflation.”