The West Brom today announces its half-year results for the six months to 30 September 2015.
- Profit before tax of £6.0m for the six months to 30 September 2015 (30 September 2014: £6.0m)
- Net interest margin improved to 1.08% (30 September 2014: 1.05%)
- Gross residential mortgage lending of £295m (30 September 2014: £300m)
- Growth in members’ savings balances to £4.05bn (31 March 2015: £3.99bn)
- Strong capital position.
Jonathan Westhoff, Chief Executive, commented:
These results demonstrate a sound performance, with the West Brom’s profit levels maintained year on year.
We continue to make funds available for homebuyers, advancing £295m of gross prime residential lending during the period, and are well on track to exceed the full year figure of £446m in completions for 2014/15.
Much of this is down to our increased presence and growing reputation in the intermediary market, which enables us to broaden our lending to a wider geographical area. We pride ourselves on delivering a high standard of service to our intermediary partners so that they can recommend the Society’s mortgage products to their clients with confidence. This is reflected in the four star rating we achieved in this month’s Financial Adviser Service Awards.
Arrears levels for mortgages issued since the Society re-entered the market in 2012 are negligible and none of these accounts are currently at three months or more in arrears.
For savings members we have kept our offering competitive through a range of branch, direct and internet accounts. Our products are simple to understand and in some cases returns are tiered so that we reward those who are able to save more with our very best rates.
It is pleasing to have seen an increase in retail savings balances since the end of our last full financial year, which means that the vast majority of new mortgage lending is funded by retail deposits.
Savers are also making use of the current opportunities for tax-free saving, with an increase of just over 15% achieved in ISA balances amongst our membership. In light of this, we anticipate members will welcome changes scheduled for next year to the rules governing taxation for savings income. The government estimates that 95% of the population will no longer pay tax on their savings once the new Personal Savings Allowance is introduced in April 2016.
Looking ahead to the coming months, the West Brom will stay focused on delivering all round member value and we expect to see further growth in our residential lending. We will continue to invest in our mortgage and savings systems in order to facilitate this.
We also eagerly await the unveiling of our new West Bromwich head office at Providence Place. Completion is expected shortly, after which we can begin the fit-out and transition phase with a view to moving colleagues across by the end of the financial year.
Full half-yearly financial information can be accessed here.