POB.L Regulatory News (POB)

1 Feb 2006 07:00

Portman Building Society01 February 2006 PORTMAN BUILDING SOCIETYPRESS RELEASEFor Immediate Release1 February 2006 PORTMAN ANNOUNCES OUTSTANDING 2005 ANNUAL RESULTS - BUILDING SOCIETY REPORTS 15% GROWTH - Portman Building Society today announced its annual results for 2005, revealinga 15% growth in assets and firmly underlining its position as the third largestand fastest growing top ten UK building society*. Key Achievements: • Total assets increased by 15% to £17.8 billion• 9th consecutive year of profit growth• Residential mortgage balances up by 16% to £13.5 billion• New residential lending up by 18% to £4.3 billion• Solvency strengthened to 13.6%• Successful first year performance by new financial planning sales force• The fastest growing top ten building society over the last five years Commenting on the Group's performance, Portman Chief Executive Robert Sharpesaid: "2005 has been another highly successful year for the Group, against thebackground of a very challenging period for the UK mortgage lending and retailsavings sectors. "Despite these challenges, I am delighted to report that 2005 represents the 9thconsecutive year of profit growth for the Group. Our mutual advantage enables usto continue to deliver highly competitive products to both our borrowing andsaving members. During 2005, we achieved exceptional growth in both new andretained residential lending and introduced a series of market leading savingsproducts designed to reward both our existing members and attract new members tothe Society. "Growth will continue to underpin our success as a mutual organisation and ourfocus remains firmly on providing a strong infrastructure to support thisstrategy. During 2005, the Group has further expanded the sales andadministration functions at the former Staffordshire Building Society HeadOffice in Wolverhampton. This expansion has been primarily through the highlysuccessful Portman Direct operation which, in just its second year of existence,is already contributing significantly to the Group's new prime mortgagebusiness. "At the beginning of the year, we established our new financial planning salesforce. This was a significant change for the Group and one which has greatlyenhanced the breadth of service offered to members. We are already seeingpositive results from this move, with investments made through the Societyincreasing by more than 50% compared with 2004. "Our non-member business also continues to thrive and is delivering recordprofits to the Group. This year, our specialist lending subsidiary, The MortgageWorks, reported a 44% increase in profit to £25 million. "2006 will bring its own challenges to the industry as a whole and, whilst thereis some uncertainty in terms of the economy and housing market going forward, Iam confident that the Portman Group will continue to build on its position as anexceptionally successful, member-focussed mutual organisation," Sharpeconcluded. Business Highlights: Mortgages Despite the uncertain outlook at the start of 2005, the Group had a record yearwith new residential lending, up 18% to £4.3 billion, reflecting the marketleading rates which were consistently offered across its product range. This,combined with a very successful borrower retention strategy, has resulted inexceptional growth in its total residential mortgage balances, up 16% to £13.5billion. Savings The Group focused on introducing a series of savings products with extremelycompetitive rates to achieve a balance which benefited both existing and newsavers. All the following offered base rate or higher: • a Members' Loyalty Account;• a 50 Plus Account for savers over this age;• two Branch Bonus Saver issues; and• a 25 Day Notice ISA. As a result, the Society achieved an excellent performance in terms of customerretention and a satisfactory level of new savings inflows, particularly in thesecond half of 2005. The Mortgage Works Once again, the profitability of the Group's non-member business was strong,with The Mortgage Works delivering a 44% increase in profit to £25 million. -ENDS- Editor's notes: • The Annual Results, which have been prepared, for the first time, under International Financial Reporting Standards (IFRS), accompany this press release. To access, click or copy the following link into your web browser. http://www.rns-pdf.londonstockexchange.com/rns/7286x_1-2006-1-31.pdf • A full reconciliation of the impact of the transition to IFRS on previous years was published in our Interim Report in September 2005. To access, click or copy the following link into your web browser. http://www.rns-pdf.londonstockexchange.com/rns/7286x_2-2006-1-31.pdf • Portman Group consists of: i. Portman Building Society is the third largest UK building society and 13th largest UK mortgage lender. In the five years since 2000, Portman has more than doubled in size. *During this period Portman was the fastest growing top ten building society in terms of total assets. The Group has total assets of £17.8 billion and employs over 2,300 staff, serving 1.8 million members. The Society has a network of 142 branches. Its Head Office is in Bournemouth, Dorset and it has an administration centre based in the West Midlands. ii. The Mortgage Works (UK) plc is a specialist mortgage lender which has been operating in the UK mortgage market for the last 15 years. Its product range, available through brokers, includes self-certification, buy-to-let and adverse credit. iii. Portman Channel Islands Ltd is based in the Bailiwick of Guernsey and, as the offshore deposit taking subsidiary of Portman Building Society, offers a safe home for its investors' money together with friendly and efficient service. Further comment from the Society's Executive Team on the annual results can bearranged by contacting the Press Office. A selection of photographs is alsoavailable. Readers requiring further information about any of the products or servicesoffered by the Portman Group can visit any branch of the Portman or call 0845 6090 600 for details. Information can also be found by visiting www.portman.co.uk Journalists requiring further information please contact: Lynsey HallamGroup Press Officer01202 56225607887 830000 This information is provided by RNS The company news service from the London Stock Exchange