Statement on Press Speculation

14 January 2015

Manchester Building Society Statement on Press Speculation

Manchester Building Society Group ("the Society") notes recent press speculation regarding the Society and the consequent volatility in the market price of its Permanent Interest Bearing Shares (PIBS).

The Board reviews the Society's capital requirements regularly and believes that the Society is appropriately capitalised today taking account of the Society's asset profile and current strategy. The Board holds regular discussions with its Profit Participating Deferred Share (PPDS) holders and will continue to do so in line with market developments.

The Society continues to trade profitably and is holding high levels of liquidity.

As at 30 June 2014 the Society recorded a total capital ratio in excess of 17%. On 22 August 2014 the Society released its results for the half year ended 30 June 2014 and recorded total income of £6.1m, profit before tax of £1.6m and profit after tax of £0.6m.

The Society intends to announce its audited results for the year ended 31 December 2014 as planned in March 2015. The Society has continued to be profitable in the second half of 2014 on an unaudited basis.

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