SOUTH-BASED Portman Building Society returned a record set of results, unveiling a ten per cent growth in its assets to £15.5 billion.

Record new mortgage volumes at £3.6 billion were 24 per cent up on the previous record high in 2003.

Portman claims it is also on course to become Britain's third biggest building society in a matter of weeks, anticipating overtaking the Yorkshire, which is due to report its figures on February 15.

Bosses said they were "fairly confident" that those figures would move them into third spot, when they would immediately begin plotting to overtake second-placed Britannia, which has assets of £20.9 billion.

Number one, however, is a very long way off - Nationwide has assets of £101.4 billion.

Britain's third oldest building society, Bournemouth-based Portman employs more than 100 staff at 14 branches in Hampshire.

The mutual also reported that it was starting to see the benefits of its 2003 merger with the Staffordshire Building Society, which gave the group a presence of 39 branches in the Midlands.

Portman chief executive Robert Sharpe said: "2004 was a year of challenges and triumphs for the group and I am pleased to report another record set of annual results. We have continued to demonstrate our objective to thrive as a mutual by delivering consistent and fair value to our growing membership base through our products and services."