Country-by-Country Reporting

The Capital Requirements (Country-by-Country Reporting) Regulations 2013 introduce reporting obligations for institutions within the scope of the European Union’s Capital Requirements Directive (CRD IV). The requirements aim to give increased transparency regarding the activities of institutions.

West Bromwich Building Society (the Society) is the 7th largest building society in the UK. As a mutual organisation, the Society is owned and run for the benefit of its members with the safety of members’ funds being paramount. In providing a safe haven for members’ funds, the Society can fulfil its primary purpose of enabling home ownership through the provision of mortgages.

The consolidated financial statements of the West Bromwich Building Society Group (the Group) include the audited results of the Society, its subsidiary undertakings and a number of securitisation entities. The consolidated entities, their principal activities and countries of incorporation are detailed in note 16 to the Annual Report and Accounts for the years ended 31 March 2013 and 31 March 2014. All of the consolidated entities were incorporated in the United Kingdom (UK), with the exception of Hawthorn Finance Limited and Sandwell Commercial Finance No. 3 Limited which were incorporated in Jersey.

For the year ended 31 March 2014:

• Sandwell Commercial Finance No. 3 Limited did not trade, had no employees and was closed in September 2013.
• Hawthorn Finance Limited did not transact with entities outside the Group and had no employees.
• Group total income, all of which arose in the UK, was £61.9m.
• The average number of Group full time equivalent employees, all of which were employed in the UK, was 679.

The country-by-country reporting obligations for subsequent financial years will be met via a disclosure in the Annual Report and Accounts.