Interim Results

1 Aug 2006 07:00

Portman Building Society01 August 2006 PRESS RELEASE For Immediate Release 1 August 2006 PORTMAN ANNOUNCES 2006 INTERIM RESULTS Portman Building Society, the UK's 3rd largest building society, today issuedits interim results for the six months ended 30 June 2006. These excellentresults show that the Society has again delivered record financial performancewhilst announcing a further merger, with Lambeth Building Society. KEY HIGHLIGHTS • Total assets increased 5% to £18.7bn; • Savings balances increased 6% to £12.0bn with net inflows of £439m, compared with a net outflow in the first half of 2005; • New residential mortgage lending written of £2.3bn, an increase of 27% year on year; • Profit before tax increased by 13% to £44.5m; and • Proposed merger with Lambeth Building Society announced. Commenting on the results, Robert Sharpe, Chief Executive of Portman said: "I am delighted that, once again, Portman has achieved an excellent set ofresults, both in terms of profitability and growth. Our determination to deliverthe right products to both savers and borrowers has again been highlighted, withnew business volumes exceeding our natural market share in both of thesesectors. This continuing success was instrumental in convincing the Board ofLambeth Building Society that the interests of their members would be bestserved by joining such a Society with Portman's strength, a view endorsed by theLambeth's members, who overwhelmingly approved the merger of the two societiesin May (see note to editors). Despite some uncertainties in respect of theeconomy, the prospects for the housing market remain sound, and against thisbackground we expect another strong performance in the second half of the year."Sharpe concluded. -ENDS- Editors' notes: • The Interim Results, prepared under International Financial Reporting Standards, accompany this press release. To view, please click or copy the following link into your web browser http://www.rns-pdf.londonstockexchange.com/rns/0089h_-2006-7-31.pdf • Portman Group consists of: i. Portman Building Society is the third largest UK building society and 13th largest UK mortgage lender. In the six 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 £18.7 billion and employs over 2,700 staff, serving 1.7 million members. The Society has a network of 144 branches. Its Head Office is in Bournemouth, Dorset and it has an administration centre based in the West Midlands. ii. The Mortgage Works is a specialist mortgage lender which has been operating in the UK mortgage market for the last 16 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. • Lambeth Building Society merger: on 25 May 2006, Lambeth Building Society savers and borrowers overwhelmingly approved the merger of the Lambeth and Portman Building Societies at the Lambeth's AGM. Subject to confirmation by the FSA, the effective date for the merger is expected to be 30 September 2006. Further comment from the Society's Executive Team on the interim 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 should visit their local branch of Portman orcall 0845 60 90 600 for details. Information can also be found by logging ontowww.portman.co.uk For further information please contact: Lynsey HallamPress Officer01202 56225607887 830000 This information is provided by RNS The company news service from the London Stock Exchange