Key Highlights of the 2023/2024 half year financial year

• New lending applications of £945m (6 months to 30 September 2022: £609m), with completions of £458m up 66% year on year (6 months to 30 September 2022: £276m) reflecting our focus on supporting people into home ownership. Overall, net lending for owner occupiers strengthened to £161.8m, contributing to growth in the mortgage book.
• Lending for first-time buyers represented 62% of lending for home purchase (30 September 2022: 68%) with 1,398 first-time buyers supported during the period (30 September 2022: 711).
• Maintained our Standard Variable Rate (SVR) well below the industry average through the period. For a borrower at the West Brom, this equates to a saving of circa £1,600 a year for each £100,000 borrowed compared with an average market SVR of 8.09%¹.
• Savers rewarded with rates that were on average, by the end of the six months, almost one and a half times the average rates paid by the market2 (30 September 2022: two and a half times) equivalent to a member benefit of £39.1m (2022/23: £25.5m).
• Capital position remains strong with the Common Equity Tier 1 (CET 1) capital ratio at 18.5% (31 March 2023: 18.7%), giving capacity for the buyback of expensive Tier 2 subordinated debt which will reduce the Society’s interest costs going forward by £2.2m per annum.
• Statutory profit before tax of £13.6m (30 September 2022: £18.1m); excluding the cost of the buyback of Tier 2 subordinated debt (£5.1m), profit before tax ended the period at £18.7m. This was driven by strong net interest income which outweighed the impact of lower fair value gains and a reduction in the value of investment properties
• Consistently strong feedback, with customer satisfaction and a Net Promoter Score®³ unchanged at 95% and +74 respectively.
• Shortlisted for the ‘First-time Mortgage Buyers’ Choice’ award and the ‘High Street Mortgage Provider of the Year’ awards at the Moneyfacts Consumer Awards 2024.
• Reached the significant milestone of £1 million raised for Birmingham Children’s Hospital, the vast majority of which was raised through the generosity of our members over the last 16 years via our Red Balloon Appeal account.

Jonathan Westhoff, Chief Executive Officer, commented:

“We’re pleased to report another strong performance, despite the wider economic challenges that have persisted over the last six months. Stubbornly high inflation and volatility surrounding interest rates have created pressures within the market, throughout which we are proud to have supported our borrowers, whilst also ensuring our saving members receive excellent value.

Rather than slowing down throughout this period of instability, we have increased our activity, invested further in our people and supported even more people on their route into home ownership. Indeed, September saw us record our biggest ever month of mortgage applications and, for our savers, over the six month period we have maintained rates one and a half times the market average², rewarding them with an additional £39.1m of interest (30 September 2022: £25.5m).

At the core of our business is our desire to help first-time buyers into their own home (and remain there), and we’re pleased to have supported 1,398 people purchase their own home this half year (30 September 2022: 711). For our existing members, we continue to ensure that the rates we offer them are at least as good value as those offered to new customers, and we have maintained the average Standard Variable Rate (SVR) paid by our borrowers well below the industry average through the period.
In a particularly active savings market, we are continuing to reward savers with good value products. Over the six months ended 30 September 2023 we’ve welcomed 3,372 new savers to the Society, an increase of 21% on the same period last year.

We expect the market to remain uncertain for some time, as the elevated cost of living continues to impact the economy. A combination of our strong financial position and our overarching Purpose to help people own a home and save for the future, will guide us in supporting existing and future members through these unpredictable times.”

To read the full interim report, visit www.westbrom.co.uk.

_{¹ Average market revert rate sourced from Moneyfacts October 2023}

_{² Average market rates sourced from Bank of England Bankstats table A6.1}

_{³ Net Promoter Score and NPS are trademarks of Satmetrix Systems, Inc., Bain & Company, Inc., and Fred Reichheld.}