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This year our AGM was held on Wednesday 22 July at Black Country Living Museum, Tipton Road, Dudley, West Midlands DY1 4SQ. Members were also able to watch the AGM online via live stream. Click the button below to view the results.
A: Chief Executive, Jonathan Westhoff explained that the Society's principle is that all products are available to all customers, unlike some providers that reserve certain products exclusively for new customers. However, different products may have different access methods and features, and may not, therefore, be directly comparable products.
While encouraging members to make use of online services where appropriate, he stressed that the Society recognises some individuals face genuine challenges in using digital channels and will continue to provide support and choice. Maintaining a branch network remains an important part of the Society's commitment to serving members in the way that best suits their needs.
A: Mr Westhoff confirmed that the Society is in the process of replacing its core technology systems as part of a significant multi-year investment programme. As part of this transformation, the new platform will support passbooks, despite the technical complexity involved.
Chief Operating Officer, Martin Boyle added that protecting members' money remains the Society's first priority. He outlined the extensive investment being made in security systems, including round-the-clock monitoring designed to detect unusual account activity and trigger investigations where necessary.
Mr Boyle also emphasised the importance of member education in fighting scams, highlighting education and awareness sessions held in branches to help members identify fraud risks and stay safe online.
A: Chair, Mr Maltby agreed that the suggestion had merit. He noted that distributing large volumes of printed material has become increasingly costly and that postal services can sometimes be less reliable than in the past.
He said the Society would consider making information available in locations where members could access it more easily, including branches, recognising that this could provide a practical and convenient alternative for some members.
A: Mr Westhoff confirmed that the Society remains a strong supporter of shared ownership, describing it as an increasingly important route into home ownership. Around 11% of the Society's mortgage lending supports shared ownership, giving the West Brom a leading position in the market.
On branch opening hours, he explained that operating hours are regularly reviewed to ensure they remain proportionate to customer demand while keeping costs under control for members.
However, he welcomed the suggestion of extending opening hours on one day each week and said the Society would explore the economic viability of a trial to assess whether members would benefit from such a change.
A: Responding to a question about first-time buyer lending, Mr Westhoff explained that the Society prices mortgages based on a range of factors, including funding costs, capital requirements and the level of risk involved. While first-time buyers can sometimes be viewed by the market in general as presenting higher risk, affordability remains the most important consideration.
He emphasised that the Society assesses each application individually rather than making decisions based solely on customer type. The aim is both to ensure that lending is commercially sustainable for the Society's membership and that borrowers can comfortably manage their repayments.
Addressing a separate point about terminology in the Society's rules, Mr Westhoff thanked the member for highlighting a wording inconsistency and confirmed that the document would be reviewed and updated where necessary.
A: Mr Maltby explained that, as a regional building society, the West Brom attracts a significant proportion of its savers from its branch heartland, while mortgage lending naturally has a wider national reach because many applications are submitted through mortgage brokers.
Mr Westhoff said that approximately 60% to 65% of savings balances come from within the Society's local region. By comparison, around 13 to 14% of borrowers are based locally, reflecting the nationwide nature of the mortgage market. He noted that only around 2% of borrowers come directly through the branches.
He added that the Society would like to increase support for local homebuyers, particularly first-time buyers and those moving within the region. While mortgage intermediaries remain an important part of the Society's distribution strategy, increasing regional lending remains a long-term ambition.
A: Mr Westhoff confirmed that the Society does not currently plan to expand mortgage lending into Scotland. While it has operated there in the past, Scotland's different legal and regulatory framework would require additional specialist capability and investment.
Given the Society's current scale and strategic priorities, he said that developing this capability would not represent the most efficient use of members' resources.
A: Mr Maltby said the Society recognises the importance of maintaining a strong understanding of the communities it serves. In addition to the role of the Members' Council, Board members regularly visit branches to meet colleagues and gain first-hand insight into members' needs and local issues. The Board also holds dedicated sessions on topics affecting local communities and has appointed a Board Fellow to provide additional external perspective, challenge and support to the board.
He explained that the Members' Council plays an important role in the Society's governance arrangements, providing input on areas such as strategy, remuneration and major operational decisions. The Council is designed to reflect a broad cross-section of the Society's membership and communities, helping ensure member views are considered before key decisions reach the Board.
On risk and resilience, Mr Maltby said the Board spends significant time reviewing emerging risks and ensuring the Society is well prepared to respond when incidents occur. While the external risk environment continues to evolve, particularly in areas such as cyber security and geopolitics, the Society continues to invest in its people, systems and controls to strengthen its resilience.
Addressing questions about geopolitical uncertainty, tax and inheritance planning, Mr Maltby acknowledged that the financial environment can be complex and fast-changing for many consumers. While the Society is not authorised to provide financial advice, he said it continues to explore ways of supporting members in making informed financial decisions. He highlighted the Society's trial with Octopus Money, which provided access to money coaching, as one example of this approach.
Mr Westhoff added that the Society had been actively engaging with Government and the Treasury regarding proposed changes to Cash ISA allowances. He explained that the Society had lobbied policymakers, including through direct engagement with the Chancellor, to emphasise the importance of Cash ISAs to savers.
Mr Westhoff added that the building society sector's collective engagement with Government had helped influence proposals for Cash ISA reform. While an annual limit of £4,000 had initially been rumoured, the proposed allowance was subsequently increased to £12,000, helping to preserve the important role Cash ISAs play in supporting savers.
On the question of managing emerging risk, Mr Boyle said the Society continually tests its operational resilience and cyber security arrangements throughout the year. This includes regular testing of backup systems and recovery processes to demonstrate that critical services could continue in the event of a major disruption. He explained that the Society's testing programme is regularly reviewed to reflect the evolving threat landscape.
Responding to concerns about cyber-attacks affecting organisations across both the public and private sectors, Mr Boyle said the Society invests heavily in specialist cyber security expertise, continuous monitoring and independent security testing. This includes using specialist organisations to test the security of its systems and monitoring for potential threats.
Mr Boyle added that the Society continues to monitor emerging technologies, including quantum computing. While he described quantum computing as a longer-term rather than immediate risk, he said the Society keeps developments under review and considers how future technological advances could affect cyber security.
Mr Maltby noted that the Board also benefits from significant technology expertise through Non-Executive Director Nimisha Patel, who brings extensive experience as a Chief Technology Officer. He said her expertise provides valuable challenge and oversight of the Society's cyber security strategy, helping ensure the organisation continues to strengthen its approach and does not become complacent in protecting members' information.
Good afternoon everyone. A very warm welcome to you all.
It’s great to see so many members attending our Annual General Meeting both in person and also, once again, virtually.
We’re delighted to be holding our AGM at the Black Country Living Museum once again this year.
The feedback from you, our members, was resoundingly positive about the location in the heart of our region, where all its rich heritage is celebrated, and I hope that you take the opportunity to enjoy all it has to offer afterwards.
I now declare the AGM officially open.
The Society’s Rules require that 20 members be present to form a quorum, and I can confirm that there are more than that number here today.
I would now like to invite my Board colleagues standing for election or re-election to introduce themselves starting with members of the Executive team.
Thank you all.
I would also like to welcome Lucy Potter from PwC, our external auditors and Richard Preston, from the Society’s solicitors, Addleshaw Goddard.
Now turning to the meeting. The Notice of Meeting was included with the Summary Financial Statement sent to you and, therefore I propose that the ‘Notice of Meeting’ is taken as read?
Thank you.
Before moving on to the resolutions that are to be put to the meeting, I will invite the Society’s Chief Executive, Jonathan Westhoff, to give a presentation. This will update you on the continuing progress that has been made over the last 12 months. At the end of that presentation, Jonathan will take any questions that you may have.
Following that, I will take questions on any other matters, and where appropriate, I will direct those questions to my colleagues. Based on strong member feedback from previous AGMs, can I please ask that you keep your questions as succinct as possible and refrain from mini speeches!
Also, if you want to discuss a matter that is personal to you, could you raise it with a colleague after the meeting. It will be much more effective that way and will be much appreciated by others.
We aim to close the meeting by 12.30pm, after which there will be some light refreshments and an opportunity to meet the Board and our colleagues, before you explore the museum and enjoy your fish and chips.
Before I welcome Jonathan, there are three matters of your Society’s governance that I’d like to address.
Firstly, our Board membership.
Having served on the Board since 2020, David Thomas will be stepping down following this year’s AGM. During his time with the Society he has provided invaluable service as a Board member, Senior Independent Director and Risk Committee Chair, David has made significant and lasting contributions to the Board and on behalf of the whole organisation I’d like to thank him.
We are absolutely delighted to welcome Russell Galley back to the Board, after he stepped away to take some time with his family. Russell will replace David as Chair of the Risk Committee. Russell has had a vast career in financial services, leading large and complex businesses and has a detailed understanding of the risk landscape faced by the sector.
Phillip McLelland was also welcomed to the Board this year as Chair of the Audit Committee.
Phillip has considerable experience spanning a long career in financial services and the mutual sector. He brings a wealth of knowledge that will serve us well as we navigate our strategy and deliver our purpose. He is a highly valuable addition to the Board.
I am also delighted that Lynne Atkin will step up to serve as Senior Independent Director following David’s departure.
Secondly – the voice of our members and employees.
In accordance with the Society’s Rules, all Board members are also members of the Society. We have a duty to operate in the best interest of the Society’s membership.
As a result, we continually strive to ensure that the voice of all our stakeholders, including our members, employees, and customers, is heard and given full consideration in the boardroom. That is why we have two Councils, the Employee Council and the Member Council.
I am delighted to see that some members of these councils have joined us this afternoon. Your input, experiences and challenges are highly valued and help guide and influence many of the key decisions we take. Thank you for all your support.
Thirdly – Board Governance.
As you will have seen from your voting packs, the West Brom continues to promote the strongest of governance cultures, by putting all Directors up for re-election each year. We also offer members an advisory vote on Directors’ remuneration, the policy for which is subject to a binding vote every three years or anytime a change is proposed, whichever is sooner.
This year is one of those third years, and so today's vote is binding. We remain one of a small minority of societies that commits to this level of member engagement. Our regulators have strengthened the frameworks governing remuneration in financial services firms. These are reforms that we welcome and support, and our policy has been updated accordingly.
In addition to this you’ll also have noticed in your voting material that we’ve made some small changes to the rule regarding appointment of a Deputy Chair. In line with many other Societies, we feel that on the rare occasion where a Deputy is needed, the most appropriate Director would be selected at the time to deputise, rather than this being a standing position.
There were some minor errors in the original wording distributed to some members, although not all. I would like to apologise for this and can confirm that all members affected were contacted promptly with an explanation and the corrected wording.
Finally, before I hand over to Jonathan, I would like to share my excitement and optimism about the future of the West Brom. It is a privilege to serve as your Chair.
Whilst the geopolitical and economic backdrop remains uncertain and challenging -I have no doubt that the Society will continue to serve its customers, communities and colleagues very well, in the spirit of a culture that has stood the test of time for 177 years.
In support of this we will continue to invest in our people, systems and customer experience, thereby ensuring the Society remains well positioned for the future.
We will remain true to our purpose and continue to deliver for our current and future members.
Thank you. Now over to Jonathan.
