Manchester BS warns of ‘material uncertainty’ over future

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Manchester Building Society says there is “material uncertainty” around its long-term future due to a “continuing decline in the scale of operations”.

In a note to the stock exchange, it warned that its mortgage assets had reduced by around 40 per cent over the past three years and that it had no plans to start lending again for the first time since 2013.

It said: “The directors expect the accounts to refer to a material uncertainty surrounding the long-term future of the society given the continuing decline in the scale of operations.

“The society has not been active in the lending market since 2013 and has no plans to re-enter the mortgage market in the immediate future. The society’s mortgage assets have reduced by approximately 40 per cent over the last three years. The society’s liquidity position remains strong.

“The directors will be giving further consideration to the future strategy of the society over the coming months.”

The society says it will publish its 2014 results by the end of the month. It made a £4.4m profit in 2015 but had total liabilities of £508m, of which £85.4m was borrowings.