The West Brom today announces its half-year results, reporting continued progress with its Back to Basics strategy and a further reduction in losses.
- The Core Tier 1 capital ratio strengthened from 14.1% at 31 March 2013 to 14.5%.
- Operating profit of £6.0m for the six months to 30 September 2013 (30 September 2012: loss of £0.5m).
- Satisfactory Group performance, with pre-tax losses of £5.2m (30 September 2012: £6.7m).
- New residential mortgage product range introduced, receiving circa £150m of applications in the period.
- Attracted some 12,000 new savers, contributing to retail savings inflows of £0.8bn.
- Expanded the funding base through the successful completion of a second residential mortgage backed securitisation.
- Maintained a low reliance on the wholesale markets, with a wholesale funding ratio of 18.7% at 30 September 2013 (31 March 2013: 16.7%).
- Residential mortgages covered 1.11 times by retail deposits.
Jonathan Westhoff, Chief Executive, commented:
The West Brom continues to make satisfactory progress, delivering a further improvement in financial performance and seeing profits return at the operating level.
This performance is encouraging, especially in light of the continued pressure on interest margins from a record low Bank Rate, while our capital position confirms the Society’s underlying financial strength.
We have upheld our commitment to members by offering a competitive range of savings, investment and mortgage products. There is an air of confidence gradually returning to the residential property market and this is reflected in increased mortgage lending within the building society sector.
For our part, the West Brom has greatly improved its range of residential mortgages, offering competitive products to new and existing borrowers through branch, direct and intermediary channels.
We also recognise the importance of creating an infrastructure to facilitate business growth. Our recently modernised branch network gives the Society a genuine stand-out presence on local high streets and the service provided through these branches helps members access the support they need to manage their money effectively.
In addition to this we have also secured approval for our plans to construct new head office premises at Providence Place in West Bromwich town centre and appointed the main contractor for the project.