Cheshire Building Society announce 2007 results
Cheshire Building Society has announced annual results for the financial year ended 31st December 2007.Highlights:
Profit before tax from continuing operations, and before an exceptional item of £0.9 million (representing professional costs in relation to a fraudulent commercial loan), was £8.1 million (2006 - £12.4 million)
Strong balance sheet with 66% of our funding provided by retail deposits from savings members, with a healthy liquidity ratio of over 21%
High quality mortgage book with average loan to value ratio on residential lending of below 63% based on historical valuations and only 33 properties in possession at the year end, which represents 0.2% of total mortgage balances by value
Less than 1% of our total residential mortgage balances have arrears of over 90 days
Total assets increased by 5.5% to £5.0 billion
Gross lending of £1,053.9 million, with total net lending of £275.7 million
Provided over £6.0 million additional value to members through competitive savings products which in turn has led to the strengthening of the Society's liquidity position
Members' savings balances increased by £155.3 million (5.3%) to £3.1 billion
Further reduction in management expense ratio, before exceptional items, to 0.73%
Consistently competitive mortgages, savings, credit cards and personal loans which appeared in 473 best-buy tables
Commenting on the results, Robert Hough, Chairman of Cheshire Building Society, said: "During the year, the Society significantly invested in competitively priced mortgage and investment products. In 2007, we estimate that over £6.0 million of additional value, as against the previous year's level of mutuality benefits, has been distributed to members, by providing keenly priced products which in turn has led to the strengthening of the Society's liquidity position. Members' balances have increased by £155 million and we had an impressive 473 best-buy table appearances in the year. This commitment and the turbulent market environment have affected our profits but the business is strong and well placed to deliver in the future.
"As a responsible lender, the Society's prudent approach ensures we have a strong mortgage book and no exposure to the US sub-prime assets or any investments in CDOs or SIVs. We raise the majority of our funding from retail deposits made by members, thus minimising reliance on volatile money markets."