27th Feb 2007 11:55
Manchester Building Society27 February 2007 PRESS RELEASE MANCHESTER BUILDING SOCIETY RESULTS FOR THE YEAR ENDED 31 DECEMBER 2006 Manchester Building Society has maintained its track record of robust growth inits 2006 results. Total assets grew by 19.6% whilst pre-tax profits are up31.2%, the 14th successive year of increased profit. Main Performance Elements • Group Mortgage balances up 18.6% to £555 million• Group total assets increased by 19.6% to £676 million• Reserves increased by 16.2% to £25.9 million• Pre tax profits up 31.2% to £5.18 million• Society expense ratio reduced for 18th successive year, from 0.68% to 0.64%• Net interest margin increased from 1.48% to 1.66% • Year end solvency ratio 13.4% John Bee, Chairman of the Society, commented: "The 2006 results continue a consistent trend of strong total asset growth,increased profits year on year and progressive reduction in the Society'sexpense ratio. Whilst 2006 lending by the Society itself at £115 million was 16% lower than therecord level of £137 million achieved in 2005, this reflected a consciousdecision taken not to chase business at any price. Overall, organicallygenerated balances rose by 9.7% with other activities, including loan bookacquisitions, enabling the total group loan book to rise by 18.6%. The Society's subsidiary, Mortgage Broking Services Limited, showed progressiveimprovement in 2006 and achieved an overall operating profit for the year beforegroup recharges. Overall performance in 2006 has therefore been highly satisfactory, reflected inthe further enhancement achieved in the three key parameters of asset size,profitability and the expenses ratio. Although the housing market remainshighly competitive, we expect further improvement in all three in 2007". Footnote Manchester Building Society acquired 100% of the share capital of the Manchesterbased Whiteaway Laidlaw Bank Limited on 31 January 2007 for a consideration ofjust below £5 million. The bank's results are not consolidated with those ofthe Society as the transaction was completed after the Society's year end. Whiteaway Laidlaw's core business is the provision of banking service to the SMEsector. Contacts for further details David Cowie, Chief Executive Tel: 0161 833 8888Chris Gee, Finance Director Manchester Building Society Final Results 2006 12 months to 31 December 12 months to 31 December 2006 2005 £M £M Net Interest Receivable 10.29 7.59 Other Income and Net Fees Receivable 0.67 0.70 Total Income 10.96 8.29 Administrative Expenses (4.66) (4.25) Other Operating Charges (0.11) (0.16) Provision for Bad and Doubtful Debts (1.01) 0.07 Profit on Ordinary Activities 5.18 3.95 Tax on Profits on Ordinary Activities 1.70 1.13 Profit for the Year 3.48 2.82 Total Assets 676.2 565.3 Gross Capital 47.7 44.6 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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