POB.L Regulatory News (POB)

30 Nov 2006 07:01

Portman Building Society30 November 2006 30 November 2006 PRESS RELEASE PORTMAN TO ASSESS STRATEGIC OPTIONS FOR GUERNSEY DEPOSIT-TAKING BUSINESS Portman Building Society ('Portman') today announces that it has appointedGleacher Shacklock LLP to assess the strategic options for its offshore Guernseybased deposit-taking business Portman Channel Islands Limited ('PCIL'). Therange of options to be considered includes a sale of PCIL, following receipt ofa number of expressions of interest for the business from third parties. Therecan be no certainty that a transaction will be executed and continued ownershipas part of Portman Building Society is one of the options also being considered. PCIL's role has been to supplement the funding the Portman Group obtains in theUK with a range of fixed and variable rate deposit accounts for privateinvestors. Deposit balances have grown four-fold over the past five years to£630m. The average individual deposit is in excess of £80,000 (year-end 2005). Robert Sharpe, Chief Executive of Portman Building Society said: 'PCIL hasperformed exceptionally well, with growing deposits and earnings. We haveconcluded that it would be an appropriate time to consider the options for thebusiness following the interest which has been shown in it. This represents anexcellent opportunity for any business seeking to exploit the huge untappedpotential of the offshore deposit-taking market. PCIL would provide a fast trackentry into the offshore banking sector, more diverse funding and the opportunityto expand into the fast growing wealth management industry.' About Portman Building Society Portman Building Society is the third largest UK building society and 13thlargest UK mortgage lender. In the period 2000 to 2005, Portman was the fastestgrowing top ten building society in terms of total assets. The Portman Group employs over 2,500 people, serves 1.8 million members and, asat 30 June 2006, had total assets of £18.7 billion and general reserves of £704million. Pre-tax profit for the six months ended 30 June 2006 was £44.5 million(£85 million for the full year ended 31 December 2005). Following the merger with Lambeth Building Society in September 2006, Portmanhas a network of 149 branches. Its Head Office is in Bournemouth and it has anadministration centre in Wolverhampton. On 12 September 2006, the Boards of Nationwide and Portman Building Societiesannounced that they had agreed to merge. The proposed merger is expected tobecome effective by the end of September 2007, subject to approval being givenby Portman members and to confirmation by the Financial Services Authority. About Portman Channel Islands Limited Portman Channel Islands Limited is based in the Bailiwick of Guernsey and is theoffshore deposit-taking arm of Portman Building Society, which is registered inEngland and Wales and is the ultimate holding entity. PCIL is a wholly ownedsubsidiary of Portman and is regulated by the Guernsey Financial ServicesCommission. PCIL operates largely as a standalone business, with high level strategicobjectives set by the Portman Board and the day-to-day operation of the businessmanaged by the PCIL Board. Contacts Portman Building SocietyRobert Sharpe+44 (0)1202 562 256 Gleacher Shacklock LLPJohn Williams+44 (0)20 7484 1150 This information is provided by RNS The company news service from the London Stock Exchange