West Bromwich Building Society Reports Financial Results

Preliminary results announcement for the year ended 31 March 2015.

The West Brom today announces its results for the financial year ended 31 March 2015, reporting substantial growth in residential mortgage lending and pre-tax profits of £12.4m.

Key highlights include:

 - Gross residential mortgage lending of £446m, which is more than double the amount of lending carried out in our last financial year (2013/14: £214m)

 - Significantly increased pre-tax profits of £12.4m (2013/14: £2.1m)

 - A rise in the net interest margin to 1.15% (2013/14: 0.81%)

 - An increase in the Group’s strong Common Equity Tier 1 capital ratio to 14.4% (2013/14: 13.4%)

 - Plans progressing for a move to new, purpose-built head office premises in West Bromwich later in the year

 - We achieved the Investors in People Gold Award in recognition of our commitment to people development.

Jonathan Westhoff, Chief Executive, commented:

It is very pleasing to report further progress in the West Brom’s performance.  After returning to profit last year for the first time since the financial crisis, we have built on this achievement and significantly increased pre-tax profits to £12.4m.

We continue to reduce the impact of legacy issues such as commercial lending, while generating substantial volumes of new business, particularly in response to demand for residential mortgages to support homebuyers. 

Growing consumer confidence and economic stability has created a perfect backdrop for us to bolster our residential mortgage lending. Indeed volumes of gross lending for home ownership are more than double what we delivered in 2013/14.

We have been active in assisting borrowers in our regional heartland fulfil their aspirations for buying their own homes and strong relationships with our intermediary partners also gives us national reach elsewhere in England and Wales.

The West Brom also remains a safe home for members’ savings and we have striven to maintain a competitive position in the rates of interest we can offer. 

During the year we consolidated and simplified our portfolio of savings products, making it easier for members to track their money, and boosted rates for those with funds in our lowest paying accounts.  We support the new initiatives announced by the government such as Help to Buy and fully flexible ISAs and we expect that these will be made available once full details are confirmed. 

The transition of the Society over the last five years, away from its historic diversification into non-core activities and back to a building society focused on the fundamental needs of its members, is very satisfying.

Looking ahead we are optimistic about our future prospects, buoyed by growth in residential lending and a planned move to new, purpose-built head office premises in our home town of West Bromwich.  Due for completion later this year, the facility at Providence Place will accurately reflect our position as the region’s leading building society and a major local employer.

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