Notts.b/s.7 7/8 Regulatory News (NOTP)

8 Feb 2008 14:00

Nottingham Building Society08 February 2008 The Nottingham delivers robust performance in 2007 In advance of announcing its full results for the year ended 31 December 2007 later this month, Nottingham Building Society today provides a trading update. For the year ended 31 December 2007: • Mortgage lending was approximately £700 million - a record (20% up on 2006);• The mortgage book grew by more than 10%;• The gradual expansion into the buy to let and commercial lending markets has continued with close attention given to credit quality;• The quality of the mortgage book remains high and arrears levels are well below the industry average. Only three accounts, out of 29,000 mortgages, were over 12 months in arrears;• The Nottingham has no exposure to the sub-prime market;• Retail savings, reserves and capital fund over 95% of the mortgage book;• The financial position remains strong. Ian Rowling, Chief Executive, commented: "Against a backdrop of challenging market conditions, we made solid progress and delivered a number of records during 2007. "In the second half of last year the markets experienced unprecedentedturbulence. As a building society the majority of our funding comes from theretail savings of our members. This placed us in a better position than someother institutions when the credit crunch took effect. "Margins narrowed in 2007, however our underlying profit performance and capital position remain strong as our results, when published, will show. "Some aspects of the performance of our estate agency, Nottingham PropertyServices, were disappointing and we will be recording a loss for that part ofour business. Following a thorough review, we have announced proposals towithdraw our estate agency service from four branches where there has beenreducing customer demand. We will continue to offer our full building societyservice in these locations. Of a workforce of more than 500 employees, 18 jobsare at risk as a result of our proposal, and consultation with the individualsaffected, the trade union Unite and our own staff council is underway. "We remain committed to providing an integrated home buying and selling servicein our heartland trading area where there is a demand for it. It provides aclear link between the home buying aspirations of customers and our role as amortgage provider. "The general economic outlook for 2008 remains uncertain. The Nottingham is wellplaced to progress in these changing conditions and to provide our members witha vibrant, successful organisation and a safe and trusted home for their savingsand mortgages." Notes • The financial numbers quoted in this document are preliminary and subject to audit. • Founded in 1849, The Nottingham is one of the UK's top 20 UK building societies. • The Nottingham established its estate agency business in 1989. It offers estate agency services in 19 of its 32 branches in Nottinghamshire, Derbyshire, Lincolnshire and South Yorkshire. • On 7 February 2008, The Nottingham started a period of consultation with the trade union, Unite, and its staff council. This will take at least 30 days, and a final decision to withdraw the estate agency service from four locations - Cleethorpes, Long Eaton, Newark and Worksop - will be taken once this consultation has concluded. • The Nottingham is currently contacting the small number of customers affected and has arranged a number of options to ensure they experience minimal disruption to the sale or purchase of their home. This information is provided by RNS The company news service from the London Stock Exchange