Skip.b.s Pib Regulatory News (SBSA)

25 Jun 2007 07:30

Scarborough Building Society25 June 2007 Monday 25 June 2007 SCARBOROUGH ANNOUNCES RECORD RESULTS The Scarborough Building Society Group today announced an outstanding set ofannual results. Highlights of the year included:- • Group pre-tax profit up 20% to £6.8 million• Group total assets up 33%, to a record £2.3 billion• Society management expenses ratio down again, to 0.52%• Group mortgage balances up 4% to £1.4 billion• Members' savings balances up 8% to £1.3 billion• Total assets under management up 41% to £4.3 billion Outlining Scarborough's performance for the 2006/07 financial year, today,Chief Executive John Carrier explained that behind these results, keyachievements were:- • Further diversifying the business by acquiring a new offshore retail deposit-taking subsidiary, Scarborough Channel Islands Limited (SCIL). • Launching a new non-conforming lending arm, Scarborough Specialist Mortgages (SSM), enabling the Group to cater for the full market spectrum of customers. • Producing innovative, long term good value products to meet changing social needs, including a dedicated Christmas Saver account giving people a regulated alternative to hamper clubs following the Farepak collapse. • Obtaining a first investment grade credit rating for the Group from Moody's of A3. • Securing primary and special servicer ratings of 2- and 3+ from independent ratings agency Fitch for our mortgage administration subsidiary, Scarborough Mortgage Services (SMS). • Accelerating the growth of the Group by taking on major new mortgage administration clients for SMS and completing transactions totalling £2.3 billion through mortgage trading subsidiary North Yorkshire Mortgages (NYM). • Creating a refreshed Corporate Social Responsibility (CSR) policy which outlines our commitment to members and the communities in which they live, giving 1% of pre-tax profit to good causes. • Replacing our Legacy mainframe system with new Microsoft SQL Servers, giving the Group access to the Microsoft .Net environment, to improve the efficiency and future scalability of our systems. • Launching a flagship new branch in Scarborough and planning to relocate to a new state-of-the-art branch in Leeds. John said, 'This has been a year of unprecedented growth and development forthe Scarborough Building Society Group, thanks to a clear business strategybased on our integrated model of complementary businesses. 'We have achieved a successful balance between the focus needed to deliver onour plan, and the ability to seize opportunities which enhance our Groupbusiness, whilst responding to changing consumer and social trends by bringingnew and innovative products to market. 'All of this activity has enabled us to fulfil our core purpose of creatingprofitability to invest in and sustain our business in order to return value toour members through rewarding savings products and value-for-money mortgages.' As for the future, John added that Scarborough has ambitious plans to ensurethe positive trend continues throughout the year ahead. 'Rising interest rates will create some uncertainty for the housing market andcompetition will continue to reduce operating margins,' he said. 'However, these challenges bring opportunities for the Scarborough Group, andwe look forward to taking advantage of them in the year ahead.' NOTES FOR EDITORS: For further information, or to arrange interviews, pleasecontact Press and Public Relations Manager, Tracy Fletcher, on (01723) 504219,mobile: 07973 693376 or email tracy.fletcher@scarboroughbs.co.uk. SCARBOROUGH BUILDING SOCIETY GROUPFINANCIAL RESULTS FOR THE YEAR ENDED 30 APRIL 2007SUMMARY 2007 2006 £m £mINCOME STATEMENTNet Interest Receivable 16.1 16.2Other Income and Charges 6.6 5.0 ____ ____ 22.7 21.2 Administrative Expenses (15.6) (15.6)Provisions (0.3) - ____ ____Profit before Taxation 6.8 5.6 Taxation (2.0) (1.7) ____ ___Profit for the Financial Year 4.8 3.9 ____ ___ BALANCE SHEETLiquid Assets 845 358Mortgages 1,401 1,346Fixed and Other Assets 52 29 _____ _____Total Assets 2,298 1,733 _____ _____ Shares and Borrowings 2,115 1,609Other Liabilities 28 22Subordinated Liabilities 35 35Subscribed Capital 65 15Reserves 55 52 _____ _____Total Liabilities 2,298 1,733 _____ _____ 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 over £4 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), the asset origination and trading arm; Scarborough Specialist Mortgages (SSM), our new brand offering non-conforming and buy-to-let home loans, 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 prime residential, buy-to-let (including student and holiday let), self-certification and adverse credit. • 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. This information is provided by RNS The company news service from the London Stock Exchange