Key highlights of the financial year include:

• Savers rewarded with rates that were, by the end of the year, almost double the average rates paid by the market¹ equivalent to a savings member mutual benefit of £33.2m, more than three times higher than the prior year benefit of £9.0m.
• In a market first, we aligned our approach for existing customers on our Standard Variable Rate (SVR) to that of new mortgage customers, with a lower rate for borrowers with a greater proportion of equity in their homes. Around 90% of owner occupier mortgage customers experienced savings on their interest rates, with the majority seeing a reduction of 0.75% at the time of introduction.
• This means an SVR borrower at the West Brom would save circa £1,400² a year for each £100,000 borrowed compared with an average market SVR of 7.12%³.
• £691m in new mortgage lending (2021/22: £756m), with 67% of loans for house purchase supporting first-time buyers onto the property ladder (2021/22: 54%).
• Statutory profit before tax of £31.8m (2021/22: £23.2m), driven by strong net interest income and fair value gains. This statutory profit includes the net recovery of £5.6m of previously written off costs relating to the development of an online savings platform; our underlying profit, which excludes this and the hedge ineffectiveness impact was £21.2m (2021/22: £26.6m), the reduction primarily driven by provisioning set aside for potential future credit losses.
• Strong capital position maintained with an increased Common Equity Tier 1 (CET 1) capital ratio of 18.7% (2021/22: 17.0%) and a Leverage Ratio of 7.9% (2021/22: 7.3%).
• Awarded the highest accolade in the Financial Adviser Service Awards for the 5th consecutive year. Shortlisted in four categories of the Moneyfacts 2022 awards including Best Building Society Mortgage Provider, Best First-Time Buyer Mortgage Provider, Best Variable Rate Mortgage Provider and Best Building Society Savings Provider.
• Net Promoter Score®⁴ (NPS) remained well above average at +74 (2021/22: +81) with customer satisfaction at 95% (2021/22: 96%).
• Supporting refugees from the Ukrainian conflict by providing homes to house families impacted by the crisis.
• Became the first building society in the UK, and the first employer in the West Midlands, to receive the Living Hours accreditation.

Jonathan Westhoff, Chief Executive Officer, commented:

“It’s great to report a strong performance as we continue to work through significant challenges in our external environment. Whilst our financial performance demonstrates our underlying strength and resilience, and helps us to drive forward on our Purpose-led agenda, perhaps most satisfaction comes from what we have delivered for our members, demonstrating the tangible benefits of being with a mutual that is true to its Purpose.

Over the last year, we’ve focused on ensuring our members enjoy the benefits of belonging to the West Brom. We’ve taken action to support our borrowing members by becoming the first lender in the market to align our approach for existing members on our Standard Variable Rate (SVR) to that of new mortgage members. This new approach means that all owner occupier mortgage members reverting to SVR at the end of their product term will have their rate determined by their Loan to Value (LTV). Around 90% of people on our SVR saw savings on their interest rates, with the majority seeing a reduction of 0.75%. This provided real relief for many of our members at a time when mortgage costs are increasing.

Working with our partners, we’ve also innovated by having standard charging structures amended to return value. By negotiating a reduced commission and agreeing a profit share arrangement that is distributed back to our policy holders, members taking their home and contents insurance through the West Brom benefitted, on average, with a circa 8% reduction in their insurance premiums.

For our savers, who this year have helped 3,413 members buy their first home, we’ve continued to provide ‘best buy’ fixed savings rates and have passed on rates that were almost double the average rates paid by the market . This means we saw the mutual benefit increase to £33.2m this financial year, more than three times more than last year (2021/22: £9.0m).

We know that the economic pressures are likely to impact our colleagues as well as our members therefore, we have continued to support them throughout the year. Across the winter months, over 70% of our colleagues benefitted from a one-off payment of £1,200. This sits alongside our Financial Hardship Support Fund, which exists to offer colleagues support in the event of a sudden, unexpected financial burden.

Living costs look set to remain elevated for some time to come, maintaining the pressure on households and businesses alike. We will continue to use our financial strength responsibly to support our members, colleagues and communities through these challenging times, helping people to stay in their homes and save for the future where possible.

Recent years have built a significant momentum, not measured by our size or profitability, but by the true value we deliver to our members, and I look forward to working with my new and existing colleagues to deliver even more Purpose-led innovations as we approach 175 years of mutuality at the West Brom.