Last checked at 23 Jun 2008 07:00
Monday 23 June 2008
SCARBOROUGH ANNOUNCES STRONG ANNUAL RESULTS
The Scarborough Building Society Group today announced a record set of annual results.
Highlights of the year included:-
Group pre-tax profit up 16% to £7.8 million;
Total assets under management up 20% to £5.2 billion.
Group total assets up 24% to a record £2.85 billion;
Group management expenses ratio reduced to 0.74%;
Society management expenses ratio down again to 0.37%;
Group mortgage balances up 57% to £2.2 billion;
Group retail deposit balances up 11% to £2.1 billion;
97% of mortgages funded by retail deposits.
Outlining Scarborough's performance for the 2007/8 financial year, today, Chief Executive John Carrier said: 'Despite hugely competitive and complex times, our pre-tax profit and asset growth have, once again, increased significantly.
'We are a mutual building society with a diverse business model and a responsible approach to risk management. As a result, we have no exposure to the US sub prime lending crisis through collateralised debt obligations and structured investment vehicles.
'Our success in growing retail balances means that almost 100% of our lending is now funded by savings deposits.
'In addition, our strong liquidity and capital positions ensure continuing security for our members during an emerging period of uncertainty for the financial services sector and indeed the UK economy as a whole.
'I expect this environment to result in further increases in the cost of borrowing and a slowdown in the housing market affecting property values, factors which could well impact on our financial performance next year.
'However, Scarborough has always met its challenges head-on and, equally, sees them as opportunities through which it can make progress as it follows the clarity of its strategic direction.
'We remain committed to our core purpose of offering good value mortgages and savings, and delivering continuing success for the benefit of our members despite what is likely to be a tough operating environment in the year ahead.'
NOTES FOR EDITORS: For further information, or to arrange interviews, please contact Press and Public Relations Manager, Tracy Fletcher, on (01723) 504219, mobile: 07973 693376 or email tracy.fletcher@scarboroughbs.co.uk.
SCARBOROUGH BUILDING SOCIETY GROUP
FINANCIAL RESULTS FOR THE YEAR ENDED 30 APRIL 2008
SUMMARY
| 2008 | 2007 | |
| £m | £m | |
| INCOME STATEMENT | ||
| Net Interest Receivable | 18.7 | 16.1 |
| Other Income and Charges | 9.4 | 6.6 |
| 28.1 | 22.7 | |
| Administrative Expenses | (19.0) | (15.6) |
| Provisions | (1.3) | (0.3) |
| ____ | ____ | |
| Profit before Taxation | 7.8 | 6.8 |
| Taxation | (1.4) | (2.0) |
| ____ | ____ | |
| Profit for the Financial Year | 6.4 | 4.8 |
| BALANCE SHEET | ||
| Liquid Assets | 597 | 845 |
| Mortgages | 2,193 | 1,401 |
| Fixed and Other Assets | 62 | 52 |
| Total Assets | 2,852 | 2,298 |
| Shares and Borrowings | 2,653 | 2,115 |
| Other Liabilities | 46 | 28 |
| Subordinated Liabilities | 30 | 35 |
| Subscribed Capital | 65 | 65 |
| Reserves | 58 | 55 |
| Total Liabilities | 2,852 | 2,298 |
BACKGROUND INFORMATION - SCARBOROUGH BUILDING SOCIETY
SBS is a successful UK building society, operating throughout the UK, as well as through its offshore subsidiary, based in Guernsey.
With Group assets under management of £5.2 billion and a Moody's investment grade credit rating, SBS is a financially secure top 20 building society, with interests across a broad range of financial services businesses.
The SBS Group is made up of Scarborough Building Society; Scarborough Mortgage Services (SMS), which administers mortgages for several international investment banks and other UK financial services businesses; North Yorkshire Mortgages (NYM), our mortgage trading arm, and our offshore deposit-taking subsidiary Scarborough Channel Islands Limited (SCIL).
The Group also operates through a national network of mortgage intermediaries, offering products to a wide range of market segments; including residential and buy-to-let.
We are committed to actively supporting our local communities by delivering a Corporate Social Responsibility policy encompassing cash sponsorship, staff volunteering, environmentally friendly practices and investment in our people.
We believe in leading by example and being different through our professionalism, innovative products, systems and infrastructure, and the way we do business.
An Investor in People with an achievement culture, we strive to be an employer of choice by offering fair pay, opportunities for training and career development, recognition for outstanding performance and attractive benefits.