Last checked at 31 Jan 2011 12:33
PRESS RELEASE
31 January 2011
Manchester Building Society ("the Society") today announces the disposal of its wholly owned subsidiary Whiteaway Laidlaw Bank Limited ("WLB"), a commercial bank supporting small business and personal customers, to the RBS Special Opportunities Fund of RBS Equity Finance.
The Society acquired WLB in January 2007, with both institutions based in Manchester and focussed on the provision of retail savings, mortgage and other finance, primarily in the North West of England.
Based on draft, unaudited financial results, the disposal will improve the Society's Core Tier 1 capital ratio from 8.6% at 31 December 2009 to an expected position of 10.6% at 31 January 2011, with the total solvency ratio moving from 13.9% to 19.4% over the same period. This puts the Society in a strong position to accommodate the additional capital requirements that financial institutions will need to develop under Basel III.
The Society's Chairman, Michael Prior, commented:
"We believe that the disposal of WLB will generate considerable added value to both the Society and to the RBS Special Opportunities Fund of RBS Equity Finance. The improvement seen in the Society's regulatory capital position is noteworthy and results in a much stronger balance sheet position as we progress through 2011. The resulting group structure becomes more streamlined and cost efficient, which should benefit our members through the products and services that the Society can offer. The Society's Board took great pride in its acquisition of a fellow Manchester-based financial institution in early 2007 and I would like to take this opportunity, as our period of stewardship comes to an end, to thank each member of the WLB team for their tremendous effort and support during the time that they have been a part of the Manchester Building Society Group".
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Contacts for Further Information:
David Cowie
Chief Executive, Manchester Building Society 0161 923 8000
Chris Gee
Finance Director, Manchester Building Society 0161 923 8000
Footnote to Editors:
·; Manchester Building Society is the UK's 16th largest building society, with total assets at 31 December 2009 of £907 million.
·; Based in Manchester City Centre, the Society has over 40,000 investing members and 5,400 borrowing members.
·; The Society provides a range of individually underwritten residential owner occupied Fixed and Discounted Variable Rate mortgages.
·; Manchester Building Society regularly features in the "best buy" tables for its mortgage and retail savings products.