After-tax profits fell 81% to £1.69m and total assets were down 3.5% at £2.26bn.

It said: "During the previous year the group was able to undertake a capital restructure which released a windfall profit into the business to help offset the adverse climate including the funding of a levy to the Financial Services Compensation Scheme.

"For that reason comparisons between 2009 and 2008 results are not reflective of the very creditable performance for the 2009 year.

"Significantly the Society has been able to maintain high retail balances such that all mortgage lending is fully funded without reliance upon wholesale deposits.

"For the eighth consecutive year the Society has improved the management expense ratio - largely regarded as a measure of efficiency - to 0.39% giving it the lowest published management expense ratio in the industry."

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