Newcastle8%pibs Regulatory News (MBSR)

23 Feb 2005 13:20

Manchester Building Society23 February 2005 Manchester Building Society Reports another Strong Year for Growth and Profit Manchester Building Society have released their preliminary results for the financial year ended 31 December 2004. Highlights - Total Assets have increased by 16.8% in 2004 and have increased by 71% over the past three years. - New lending up 13.4% in 2004 to £115.6 million. - Group Mortgage balances 21.0% to £384.9 million.- Retail savings balances up 22.4% to £383.6 million.- Group profit before tax up 20% to £3.3 million, the 12th successive year that profits have risen.- Increase in net Interest margin from 1.45% to 1.56%- Society management expense ratio reduced from 0.83% to 0.76% - Mortgage broker network subsidiary, Mortgage Broking Services Limited, established in the new mortgage regulatory environment with 33 appointed representative members so far. The results incorporate early adoption of FRS17 in respect of the Society'sfinal salary scheme in which accrued benefits had been frozen in January 2000. Chairman of the Society, Michael Dunham commented "2004 represented a year of substantial progress for the Society, with our corebusinesses of mortgage lending and retail deposit taking each growing by morethan 20%, significantly higher than our natural market share. Pre-tax profitsbenefited from a slight recovery in the interest margin and were up 20% to a newrecord level of £3.3 million. During 2004 substantial internal resources were deployed to ensure that theSociety was able to meet the new compliance requirements arising from the newlyregulated mortgage market. We also recognised that mortgage brokers, whoinfluence more than half of the residential mortgage market would need acompliance solution in this new regulated environment and we have thereforeinvested significant resources in the development of a mortgage broker networksubsidiary, Mortgage Broking Services Limited. We believe that the network willbe a significant contributor to the Society's future development over the mediumto longer term." Final Results 2004 12 months to 31 12 months to 31 December 2004 December 2003 £M £M Net Interest Receivable 6.91 5.44 Other Income and Net Fees Receivable 0.56 0.68 ---- ----Total Income 7.47 6.12 Administrative Expenses (3.66) (3.12) Other Operating Charges (0.31) (0.26) Provision for Bad and Doubtful Debts (0.21) (0.01) ------ ------ Profit on Ordinary Activities 3.29 2.73 Tax on Profits on Ordinary Activities (0.97) (0.84) ------ ------ Profit for the Year 2.32 1.89 ----- ----- Total Assets 476.0 407.7 Gross Capital 31.7 27.3 This information is provided by RNS The company news service from the London Stock Exchange