West Brom reports half year results

Announcement of half-year results for the six months to 30 September 2018.

The West Brom today announces its half-year results for the six months to 30 September 2018.

Key highlights: 

- £466m advanced for new mortgage lending (30 September 2017: £478m), maintaining traction in a highly competitive market.
- Increased support and more product choice for first time buyers; we enabled more than 2,000 people to purchase their first home during the half-year.
- Net Promoter Score up from 65 to 71 and customer satisfaction up from 94% to 95%.
- Appointment of new Member and Employee Councils reflects our ongoing commitment to engaging with key stakeholders and responding to their needs. 
- Profit before tax of £6.0m for the six months to 30 September 2018, a year on year increase of 43% (30 September 2017: £4.2m).
- An uplift in the net interest margin to 1.02% (30 September 2017: 0.98%).
- Strengthened capital position as a result of a successful Liability Management Exercise and increase in retained profit. 
- The Society’s Common Equity Tier 1 (CET 1) capital ratio now stands at 15.2% (30 September 2017: 14.8%).

Jonathan Westhoff, Chief Executive, commented: 

The Society has delivered a strong half-year performance, despite an increasingly competitive market, with a 43% increase in profits and continued all-round support for our members.  Improved profitability allows us to grow the business sustainably and invest in the type of products and services we can offer. 

In recognition of our role in supporting those who aspire to own their own home, advances to first time buyers accounted for over a third (38%) of our total new lending during the last six months. We have also broadened our product range so that we can support borrowers who have more specialist needs, making a controlled entry into the self-build, assisted mortgage and limited company buy to let markets.  

For savers, our average interest rate payable was 42% higher than the market average.  Our members also welcomed a subsequent boost when we upped the majority of our savings rates in response to the latest increase in Bank Rate.  

We ensure our savings products cater for a variety of needs, including a recently enhanced children’s account and our Help to Buy ISA for those who are building up a deposit for their first home.  In addition, we provide services for retirement and later life planning and devoted a month to raising awareness about pensions through a series of in-branch clinics hosted by independent financial advisers. 

The heightened levels of political and economic uncertainty surrounding Brexit and intensified mortgage market pricing competition could present considerable challenges for the financial sector in the months and, potentially, years to come. 

In the face of these challenges, the Society will continue to be there for its members with its responsible approach to lending and supporting its savers.

Alongside established distribution channels such as our branch network, the Society is committed to investing in its core technology platforms to allow greater digital capability and operational resilience, which is something members quite rightly expect from a modern building society.  Work in this area is well underway and will continue to be a significant focus for us in the years ahead.

A copy of our Preliminary Results is available to view and download here.

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