Principality Building Society, which has branches across Gwent, has announced record profits, and has also revealed the agreed sale of Peter Alan estate agents, and the outsourcing of its surveying business to the Connells Group for consideration of £16.4m.

As the deal was completed in July any profits from the sale will be reflected in Principality’s full year results for 2014.

Reporting on the half year performance to June 30, 2014, Principality said it increased new residential mortgage lending by seven per cent compared with last year and has once again been named the most recommended savings provider in Wales.

Graeme Yorston, group chief executive, said: “Since we launched our mortgage growth strategy at the beginning of 2012 we have become the UK’s sixth largest building society and increased net residential mortgage lending by more than £1bn. Our profit levels have also reached record levels in the first six months of 2014, which in turn has strengthened our balance sheet as demand for capital increases from both our regulators and the wider European capital requirements.

Mr Yorston said: “As part of our strategy to focus on the core society and grow retail mortgage lending, we regularly review our businesses to ensure that they are prospering in our ownership.

"Through this review we have determined that Peter Alan and our surveyors business would be better supported within a group of similar businesses to ensure the potential is optimised.

"The profit generated from the sale of Peter Alan and outsourcing of our surveying business also provides further capital to the core business as well as providing further investment opportunities.

“We are confident that with Connells’ expertise, scale and values, Peter Alan and the surveying business, will continue to prosper and that they will be able to maximise the potential of these excellent businesses.”

All Peter Alan and surveying staff will transfer to the Connells Group.