The West Brom today announces its results for the financial year ended 31 March 2013.

Key highlights from the 2012/13 financial year include:

• An increase in the Group’s Core Tier 1 capital ratio from 13.3% to 14.1%, remaining one of the highest among UK banks and building societies;
• A strong focus on effective liquidity management with robust levels of high quality liquid assets held throughout the period;
• Retail savings inflows of £1.7bn, attracting some 26,400 new savers, with residential mortgages covered 1.16 times by retail deposits;
• Net interest margin improving to 0.49% (2011/12: 0.47%); and
• Pre-tax losses reducing for the fourth consecutive year to £9.4m (2011/12: £9.5m), despite challenging economic conditions.

Jonathan Westhoff, Chief Executive, commented:

"The West Brom can be very satisfied with its performance for the year, particularly given the ongoing challenges facing the wider economy and the slow pace of recovery. A further reduction in losses has again confirmed the validity of our Back to Basics strategy and its focus on the core building society activities of retail savings, investments and prime residential mortgages.

This progress has been sustained over a four year period, despite continuing pressure on interest margins as a result of a record low Bank Rate. At the same time we have significantly strengthened our Core Tier 1 capital ratio, a fundamental measure of financial strength, which increased to 14.1% during the year and has more than doubled since the start of our Back to Basics strategy.

Improvements can also clearly be seen in the way we support our members. We have launched a range of market leading mortgage products available to new and existing borrowers and endeavoured to offer savers a choice of competitive products tailored to their specific needs.

The Society also completed an extensive modernisation programme to improve facilities and service standards in our branches and greatly enhance our profile on local high streets.

This willingness to invest in the business sends out a clear message of confidence, which will continue into the year ahead as we embark on the construction of a new head office in our home town of West Bromwich.”