Birmingham’s biggest credit union has reported a rise in lending, membership and savings in its annual report.

Citysave saw its loan book rise by £200,000 to £3.9 million in the year to September 2013 with 6,026 loans issued.

Membership grow by five per cent to 9,654 and savings were £6.05 million, a rise of £405,000.

The mutual has invested in a range of new bank accounts, a new website and phone systems and touch screeen kiosks at its Waterloo Street branch.

The Birmingham Post Business Awards 2013 finance award winner said it was the first time in some years that it created a surplus without reliance on grant income, over and above the investment it made in the organisation. This will see a dividend payment to members for the fourth year in excess of deposit rates being paid by banks and building societies on instant savings.

Chief executive officer Angela Clements said: “Credit unions are more necessary than ever, with more of our local residents needing ethical and affordable financial services.

“Whilst pay day lenders operate under the lightest regulatory regime and regulators struggle to regulate the banks, credit unions operate under a very tight framework of regulation. We a seek a regulatory framework that would enable us to become the sector that so many are seeking for us to be.”

The union has worked with Birmingham City Council to create the Birmingham Fair Money Manifesto to promote affordable and responsible lending.