17th Mar 2009 10:59
MANCHESTER BUILDING SOCIETY
RESULTS FOR THE FINANCIAL YEAR ENDED 31 DECEMBER 2008
Main Elements of Performance
Group total assets up by 19.63% to £948M
Group liquid assets up by 26.5% to £220M
Members' deposits up by 21.0% to £668M
Group loan book increased by 17.5% to £709M
Pre-tax profit fell from £6.0M to £2.4M, after accounting for:
Provisions of £5.25M (75%) made against Icelandic bank exposures totalling £7M
£0.5 million provided for Financial Services Compensation Scheme levies
Reserves increased by 5.7% to £32.0M
Society expense ratio reduced from 0.64% to 0.61%
John Bee, Chairman of the Society commented:-
"It is disappointing to report that a strong overall performance during 2008 was materially impacted by the need to provide against Icelandic bank exposures. Despite this, the Society is still able to report an acceptable level of profit in a year of such turmoil in the sector.
The Society has also made provision for 18 months of the levies to be paid to the Financial Services Compensation Scheme following the collapse of Bradford and Bingley, the Icelandic Banks and London Scottish Bank.
2008 advances totalled £107 million a reduction of 12% from the level achieved in 2007. In addition the Society acquired £50 million of mortgages from other lenders. Aggregate year on year growth in the Society loan book was also boosted by the low level of redemptions reflecting the general lack of activity in the UK housing market.
2008 saw the disposal of the Society's subsidiary, Mortgage Broking Services Limited, following a decision by the Society's Board in early 2008 that the network operation was no longer a core activity.
Prospects for 2009 remain uncertain given the problems facing the UK economy generally and the housing market in particular. The Society has, however, made a sound start both in terms of profitability and arrears levels, the latter of which are below the industry average."
Contacts for further details:
Chris Gee, Finance Director Tel: 0161 923 8000
Final Results 2008
|
12 months to 31 December 2008 £M |
12 months to 31 December 2007 £M |
|
|
Net Interest Receivable |
12.0 |
11.9 |
|
Other Income and Net Fees Receivable |
4.8 |
4.3 |
|
Total Income |
16.8 |
16.2 |
|
Administrative Expenses |
(7.5) |
(7.2) |
|
Other Operating Charges |
(0.4) |
(0.6) |
|
Provision for Bad and Doubtful Debts |
(0.7) |
(2.4) |
|
Icelandic Provisions |
(5.3) |
0 |
|
FSCS Levies |
(0.5) |
0 |
|
Profit on Ordinary Activities |
2.4 |
6.0 |
|
Tax on Profits on Ordinary Activities |
(0.7) |
(1.7) |
|
Profit for the Year |
1.7 |
4.3 |
|
Total Assets |
948 |
792 |
|
Gross Capital |
62.5 |
56.5 |
Related Shares:
Newcastle8%pibs