The West Brom today announces its results for the financial year ended 31 March 2014, reporting a welcome return to profit.
Key highlights from the 2013/14 financial year include:
- A return to profit, with pre-tax profits of £2.1m (2012/13 restated: loss of £9.1m).
- A strong improvement in net interest margin to 0.81% (2012/13: 0.49%).
- Following a return to the residential lending market, gross lending of £213.6m (2012/13: £19.3m).
- An increase in the Group’s strong Common Equity Tier 1 capital ratio from 12.8% to 13.4%.
- Retail savings inflows of £1.5bn, attracting 18,417 new savers, with residential mortgages covered 1.10 times by retail deposits.
Jonathan Westhoff, Chief Executive, commented:
“The return to profit is a landmark achievement and a direct result of the ‘Back to Basics’ strategy we implemented in 2009.
At the same time we have further strengthened our capital position, creating the right conditions for a period of sustainable growth.
We remain resolute in our adherence to the traditional building society model and the delivery of long-term value for members. Residential lending activity in particular has gathered pace over the last year, underpinned by a new mortgage processing platform and a suite of products that appeal to both new and existing borrowers.
In recognising the importance of supporting members to achieve a secure financial future, the West Brom has remained one of the few high street providers to offer face to face financial advice. We have partnered with Towergate Financial who can now search the entire market to find the optimum financial solutions according to customers’ specific needs.
We also recognise the need for strategic investment to facilitate further growth and deliver member value. Having recently enhanced our mortgage processing platform and branch network, attention now turns to our new Head Office currently under construction in West Bromwich town centre.
Due for completion in 2015, this building will represent a modern, efficient and environmentally friendly base from which the business can expand with our people fully equipped to support and serve our membership.
Our return to profit, strengthened capital position and the improving economic environment mean that West Brom can face the future with considerable optimism.”