West.brom 6.15% Regulatory News (WBS)

31 May 2006 18:19

West Bromwich Building Society31 May 2006 The following replaces the Final Results announcement released today at 17.28 under RNS number 8655D. West Bromwich Building Society has, for the 9th consecutive year, announced afinancial performance - one of the best in the whole sector. Performance Highlights • Growth of 23% to a record £7.2bn assets. • Mortgage assets under management up 21% to a record £5.7bn. • Gross lending up 18% to a record £2.2bn. • Net savings balances up by £400m to a record £4.0bn. • Subsidiaries pre-tax profit up 22% to a record £18m. • Society management expense ratio down to a record 0.69% • Pre-tax profits up by 10% before gains from the revaluation and sale of investment properties. These impressive results have enabled the Society to share a record £30m thisyear (£27.5m in 2004/5) with members through better investment rates, loyaltymortgage rates and other mutuality benefits. Consolidated Income Statement for the year ended 31st March 2006 2006 2005 £m £mInterest receivable and similar income 343.2 285.4Interest expense and similar charges (282.6) (229.8)Net interest receivable 60.6 55.6Fees and commissions receivable 18.3 12.7Fees and commissions payable (5.2) (8.3)Total gains on investment properties 3.8 9.5Other operating income 9.4 14.6Total operating income 86.9 84.1Administrative expenses (48.3) (43.4)Reversal of impairment losses on loans and advances 1.5 2.9Provisions for liabilities (1.6) (2.5)Profit before tax 38.5 41.1Tax expense (11.1) (11.8)Profit for the year attributable to members of the Society 27.4 29.3 Statement of Recognised Income and ExpenseFor the year ended 31 March 2006 2006 2005 £m £mAvailable for sale investments -valuation gains taken to equity 0.5 - Actuarial loss on retirement benefit obligations (1.8) (1.2)Tax on items taken directly to equity 0.4 0.4Net cost recognised directly in equity (0.9) (0.8) Profit for the financial year 27.4 29.3 Total recognised income and expense for the period 26.5 28.5 Amounts recognised on adoption of IAS32 and IAS39 Recognised in general reserves (24.2) - Recognised in Available for sale reserve 0.3 - Deferred tax on first time adoption of IAS32 and IAS39 6.5 - Net expense recognised upon first time adoption of IAS32 and IAS39 (17.4) - Total recognised income and expense since last annual accounts 9.1 28.5 Group Balance Sheet at 31st March 2006 2006 2005 £m £mAssetsCash and balances with Bank of England 8.6 7.2Loans and advances to credit institutions 342.2 314.8Investment securities - available-for-sale 1,031.3 693.2Derivative financial instruments 17.8 -Loans and advances to customers: 5,653.4 4,686.7Intangible assets 13.8 14.0Investment properties 96.5 77.3Property, plant and equipment 24.5 21.1Other assets 19.7 61.4 Total Assets 5,875.7 7,207.8 LiabilitiesShares 3,975.5 3,569.2Amounts due to credit institutions 242.7 210.8Amounts due to other customers 864.9 584.8Derivative financial instruments 10.8 -Debt securities in issue 1,597.0 1,096.0Other liabilities 43.6 36.5Provisions for liabilities 3.0 2.5Subordinated debt 112.4 107.5Subscribed capital 76.1 -Retirement benefit obligations 4.9 4.0 Total Liabilities 6,930.9 5,611.3 EquityGeneral reserves 270.2 261.7Revaluation reserve 6.1 2.7Available for sale reserve 0.6 -Total equity attributable to members 276.9 264.4 Total Liabilities and Equity 7,207.8 5,875.7 Consolidated Cash Flow Statementsfor the year ended 31st March 2006 2006 2005 £m £m Net cash inflow from operating activities 450.0 476.5Taxation (9.4) (9.3)Cash flows from investing activities Purchase of investment securities (2,127.8) (552.4) Proceeds from disposal of investment securities 2,230.8 471.8 Purchase of property, plant and equipment and intangible assets (2.7) (4.1) Proceeds from disposal of property, plant and equipment 0.1 0.6 Purchase of investment property (15.6) (10.4) Proceeds from disposal of investment properties 0.2 8.2 Purchase of subsidiary undertakings in the year - (6.8) Purchase of mortgage portfolios (436.3) (352.3)Net cash flows from investing activities (351.3) (445.4) Cash flows from financing activities Issue of subordinated liabilities and subscribed capital 75.0 25.0 Interest paid on subordinated liabilities and subscribed capital (7.8) (7.7) Issue of mortgage backed loans notes 350.0 - Repayment of mortgage backed loans notes (43.1) -Net cash flows from financing activities 374.1 17.3 Net increase in cash 463.4 39.1Cash and cash equivalents at beginning of year 174.5 135.4Cash and cash equivalents at end of year 637.9 174.5 Notes 1. The financial information set out above, which was approved by the Board on 31 May 2006, does not constitute accounts within the meaning of the Building Societies Act 1986. 2. The annual accounts have been prepared for the first time underInternational Financial Reporting Standards (IFRS). Comparative information hasalso been restated as required by IFRS. The reconciliation of comparativeinformation from previous UK GAAP accounting requirements can be found in the31st March 2006 Annual Report and Accounts. 3. The financial information for the years ended 31 March 2006 and 31 March2005 has been extracted from the Annual Accounts for those years. AnnualAccounts for the year ended 31 March 2005 have been filed with the FinancialServices Authority and those for the year ended 31 March 2006 will be filed withthe Financial Services Authority following publication. The Auditors' Report onthe Annual Accounts for both years were unqualified. END This information is provided by RNS The company news service from the London Stock Exchange