17th Mar 2006 08:00
Manchester Building Society17 March 2006 MANCHESTER BUILDING SOCIETY FULL YEAR RESULTS Manchester Building Society report further solid progress in 2005 with total assets climbing above £500 million for the first time. MAIN PERFORMANCE ELEMENTS New Advances increased by 18.5% to £137 million Mortgage Balances up 21.6% to £463 million Total Assets increased by 18.7% to £565 million Pre-tax profits up 20.2% to £3.95 million under IFRS Society expense ratio reduced further from 0.76% to 0.68% Interest margin reducing from 1.56% to 1.48% Reserves increased by 16.4% to £22.3 million Year End solvency 14.8% Michael Dunham, Chairman of the Society commented; "I am pleased to report that the Society has had an excellent year in 2005 against a background of intense competition in our core markets of mortgage lending and retail savings. In line with the housing market generally, lending by the Society in the first half of the year had been disappointing but picked up strongly in the second half of the year. Whilst there were some concerns 12 months ago that the housing market was overpriced and might face a sharp correction, the market had recovered its nerve by the end of the year and 2006 is expected to confirm the market's resilience. Further reduction in the expense ratio, down from 0.76% to 0.68% enabled the Society's profits to rise by 20% whilst operating on a lower interest margin of 1.48%, down from 1.56% in 2004. 2005 also saw the Society's subsidiary, Mortgage Broking Services Limited, establish itself as a significant mortgage network. The subsidiary made an operating loss of £0.5 million in its first full year of operation in 2005 but is currently on target to make an overall profit in 2006." Manchester Building Society Final Results 2005 12 months to 31 12 months to 31 December 2005 December 2004 £M £M Net Interest Receivable 7.70 6.91Other income and Net Fees Receivable 0.70 0.56Total Income 8.40 7.47 Administrative Expenses (4.25) (3.66)Other Operating Charges (0.27) (0.31)Provision for Bad and Doubtful Debts (0.07) (0.21)Profit on Ordinary Activities 3.95 3.29Tax on Profits on Ordinary Activities 1.13 (0.97)Profit for the Year 2.82 2.32 Total Assets 565.3 476.0Gross Capital 44.6 31.7 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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