The West Brom today announces its half-year results, reporting a pre-tax profit of £6.0m for the six months to 30 September 2014 and a significant increase in residential mortgage lending.
- Pre-tax profits of £6.0m for the six months to 30 September 2014 (30 September 2013 restated: loss of £7.6m)
- An improvement in the net interest margin to 1.05% (30 September 2013: 0.67%)
- Gross residential mortgage lending of £300m, which is more than the total amount of lending for our last full financial year (2013/14: £214m)
- Capital ratios which exceed regulatory requirements and position the Society for growth.
Jonathan Westhoff, Chief Executive, commented:
These results represent a significant year on year improvement in our performance and it is pleasing to have maintained a profitable position since our last year end.
The West Brom continues to deliver against its strategic objectives, having achieved £300m in completed mortgage business after just six months. We have broadened our mortgage product range to offer options at a variety of deposit levels and introduced incentives such as cash-back, free valuations and free legal services, which have resulted in us featuring consistently in the Best Buy rankings.
When the Society reduced its Standard Variable Rate in August to a market leading 3.99%, this not only made us more competitive for new borrowers, it immediately benefited existing borrowers as well.
The West Brom remains a safe and secure home for members’ savings, with our Common Equity Tier 1 capital ratio consistently strong at 13.4%. Our leverage ratio – another key measure of financial stability – is 7.5%, one of the strongest amongst UK banks and building societies.
The quality of our savings products has been recognised nationally after we received a prestigious Moneyfacts award in the category of Best No Notice Account Provider. Our aim is to deliver the best returns we can to all savers and not favour new customers with exclusive rates in preference to those who have stayed loyal to the Society for many years.
Going forward there is much for us to be excited about, in particular the construction of our new head office in West Bromwich town centre which is due for completion next year. It will continue to provide vital jobs in the town and ensure we have ample capacity for future growth.
Of course we remain vigilant to the possibility of a slowdown in the UK economic recovery, but we are well positioned to achieve our current goals. The West Brom is proud of its traditional building society values and fully focused on delivering the benefits of mutuality to members.
Full half yearly financial information can be accessed here.