The West Brom reports pre-tax loss of £13.1m
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West Brom Building Society has reported a pre-tax loss of £13.1m for year ended March 31 2011, compared to £18.5m loss in the same period last year.
The society, which sold its broking business Mortgage Force to its existing management team in March 2011, reported a post tax loss for the year of £10.4m, down from last year’s £17.0m, on an operating level it saw a return to profits of £9.3m.
The society saw its Core Tier 1 capital ratio strengthen from 11.8% to 12.8% in the year, and retail savings of £1.9bn, attracting some 29,500 new savers, with residential mortgages covered 1.22 times by retail deposits.
With regards to its residential letting operation - West Bromwich Homes, it reported an underlying trading profit for the year of £0.2m, compared with a loss of £1.2m in the previous year. It says whilst its intention is to withdraw from this market altogether this may take some time to realise in view of the subdued housing market and its effect on sale prices.
In terms of the group’s second charge mortgage business - Insignia - it was decided, in 2009, that no further lending would take place. It has seen a reduction in outstanding balances from £50.6m to £44.8m in the course of the last financial year.
Jonathan Westhoff, chief executive of West Brom, says: “Once again, we have strengthened our Core Tier 1 capital ratio. Already one of the highest amongst UK banks and building societies, we increased this ratio to 12.8%, ensuring that the Society remains a safe and secure home for savers’ money.”
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