West.brom 6.15% Regulatory News (WBS)

1 Jun 2007 09:32

West Bromwich Building Society01 June 2007 West Bromwich Building Society has, for the 10th consecutive year, announced anoutstanding financial performance - one of the best in the whole sector. Performance Highlights • Growth of 15.4% to a record £8.3bn assets.• Mortgage assets under management up 18% to a record £6.7bn.• Gross lending up 15.8% to a record £2.5bn.• Net savings balances up by £550m to a record £4.5bn.• Subsidiaries pre-tax profit up 25% to a record £22.8m.• Society management expense ratio down to a record 0.66%.• Pre-tax profits up by 14.5%. These impressive results have enabled the Society to share a record £34.1m thisyear (£30m in 2005/6) with members through better investment rates, loyaltymortgage rates and other benefits to members. Consolidated Income Statementfor the year ended 31st March 2007 2007 2006 £m £m Interest receivable and similar income 412.7 343.2Interest expense and similar charges (344.8) (282.6) Net interest receivable 67.9 60.6 Fees and commissions receivable 19.9 18.3Fees and commissions payable (2.7) (5.2)Total gains on investment properties 6.3 3.8Other operating income 8.6 9.4 Total operating income 100.0 86.9Administrative expenses (47.7) (42.9)Depreciation and amortisation (5.6) (5.4)Impairment (losses)/credits on loans and advances (1.3) 1.5Provisions for liabilities (1.3) (1.6) Profit before tax 44.1 38.5Tax expense (11.3) (11.1) Profit for the year attributable to members of the Society 32.8 27.4 Consolidated Statement of Recognised Income and Expensefor the year ended 31st March 2007 2007 2006 £m £mAvailable for sale investments: Valuation (loss)/gain taken to equity (2.0) 0.5Actuarial loss on retirement benefit obligations (1.8) (1.8)Cash flow hedge losses taken to equity (0.1) -Tax on items taken directly to equity 1.1 0.4Net cost recognised directly in equity (2.8) (0.9) Profit for the financial year 32.8 27.4 Total recognised income and expense for the period 30.0 26.5 Group Balance Sheetat 31st March 2007 2007 2006 £m £m Assets Cash and balances with the Bank of England 11.7 8.6 Loans and advances to credit institutions 207.2 342.2 Investment securities - available-for-sale 1,243.8 1,031.3 Derivative financial instruments 33.4 17.8 Loans and advances to customers: - Loans fully secured on residential 5,169.6 4,544.8 property - Loans fully secured on land 1,484.9 1,108.3 - Other loans 0.3 0.3 Intangible assets 13.4 13.8 Investment properties 114.2 96.5 Property, plant and equipment 22.3 24.5 Deferred tax assets 10.6 10.6 Trade and other receivables 7.8 9.1 Total Assets 8,319.2 7,207.8 Liabilities Shares 4,521.2 3,975.5 Amounts due to credit institutions 287.7 242.7 Amounts due to other customers 870.0 864.9 Derivative financial instruments 14.3 10.8 Debt securities in issue 2,034.1 1,597.0 Current tax liabilities 2.5 4.6 Deferred tax liabilities 8.4 8.3 Trade and other payables 32.3 30.7 Provisions for liabilities 3.3 3.0 Subordinated debt 161.1 112.4 Subscribed capital 72.9 76.1 Retirement benefit obligations 4.5 4.9 Total Liabilities 8,012.3 6,930.9 Equity General reserves 301.7 270.2 Revaluation reserve 6.1 6.1 Available for sale reserve (0.8) 0.6 Cashflow reserve (0.1) - Total equity attributable to members 306.9 276.9 Total Liabilities and Equity 8,319.2 7,207.8 Consolidated Cash Flow Statementfor the year ended 31st March 2007 2007 2006 £m £m Net cash inflow from operating activities (69.1) 450.2 Tax paid (12.1) (9.4)Cash flows from investing activities Purchase of investment securities (3,725.0) (1,663.8) Proceeds from disposal of investment securities 3,501.6 1,766.8 Purchase of property, plant and equipment and intangible assets (3.2) (2.7) Proceeds from disposal of property, plant and equipment 0.2 0.1 Purchase of investment property (14.2) (15.6) Proceeds from disposal of investment properties 2.8 0.2 Net new funding to subsidiaries - - Purchase of mortgage portfolios (166.8) (436.3)Net cash flows from investing activities (404.6) (351.3) Cash flows from financing activities Issue of subordinated liabilities 50.3 (0.1) Issue of subscribed capital 75.0 - Interest paid on subordinated liabilities (7.3) (5.8) Interest paid on subscribed capital (4.6) (2.0) Issue of mortgage backed loan notes 643.8 349.8 Repayment of mortgage backed loan notes (65.1) (43.1)Net cash flows from financing activities 617.1 373.8 Net increase in cash 131.3 463.3Cash and cash equivalents at beginning of year 637.8 174.5Cash and cash equivalents at end of year 769.1 637.8 Notes 1. The financial information set out above, which was approved by the Board on 31 May 2007, does not constitute accounts within the meaning of the Building Societies Act 1986. 2. The financial information for the years ended 31 March 2007 and 31 March 2006 has been extracted from the Annual Accounts for those years. Annual Accounts for the year ended 31 March 2006 have been filed with the Financial Services Authority and those for the year ended 31 March 2007 will be filed with the Financial Services Authority following publication. The Auditors' Report on the Annual Accounts for both years were unqualified. This information is provided by RNS The company news service from the London Stock Exchange