2005 was an exciting year of success.

Michael Bramall, Chairman of Stroud & Swindon, addressed the 155th Annual General Meeting of the Society at the Subscription Rooms in Stroud on 20 April.

Key topics from his statement included:-

A Review of 2005

Mr Bramall stated that the Society had always taken pride in offering a wide range of savings and mortgage products that offered consistency as well as value. In the current market place it was also necessary to develop specific products that appeal to particular segments of the market. Examples of this during 2005 were the Branch Premier Account, an instant access account available through branches and agencies and the Diamond account aimed specifically at the over 60’s and designed to boost their monthly income. Both of theses savings accounts regularly featured in best buy charts and attracted many thousands of new customers as well as benefiting existing investors. Similarly, on the mortgage front, a market leading 2 Year Fixed and Tracker product and a range of Buy to Let products were instrumental in the Society lending over £600 million in the year.

Financial Highlights

Since being appointed Chairman in 2003, Mr Bramall has been fortunate in being able to report consistently good financial results and 2005 was no exception:-

• Total assets up 9% to £2.5 billion, which means that assets have now grown by 74% in 5 years.
• Gross new mortgage lending of £600 million, the second highest in the Society’s history
• Profit before tax of £10.6 million.
• Core interest margin (the difference between what is paid to savers and received from borrowers) reduced from 1.18% to 1.13%, demonstrating a tangible benefit to members of operational efficiency
• Management expense ratio rose very slightly from 0.80% to 0.81%, still one of the best in the industry but reflecting the ever increasing cost of regulation.

Members and the Community

Mr Bramall commented that as a mutual building society run for the benefit of its membership, Stroud & Swindon was always keen to hear from members on any aspect of service and products. Feedback received from new and existing members was very positive in the vast majority of cases. During 2006 further initiatives will be explored to see how this communication with and involvement of the membership can be improved still further.

During the year, the Society was able to help 75 local charities and other deserving causes. The Society’s principal charity during the year was the Willow Trust which provides therapeutic trips on the Sharpness to Gloucester canal for seriously ill or disabled children and adults of all ages. The charity celebrated its 15th anniversary and 100,000th visitor during 2005.

Board of Directors

John Parker retired as Chief Executive at the end of 2005 and Mr Bramall paid tribute to his service to Stroud & Swindon and to the industry as a whole which was recognised with John being elected Chairman of the Building Societies Association during 2004-5. David Hill has now succeeded to the role of Chief Executive having previously been Finance Director. He has been succeeded in this role by Kit Beazley who is joining the Society from the Zurich Financial Group. The Society also has a new Sales Director, Paul Chafer appointed in succession to David Grant who has taken up a new role with Norwich Union.

Staff Development

Simon Whitwham, Customer Service Director, qualified as a chartered director, only the 5th building society director to be elected to the Institute of Directors.

The Society’s long association with the Investor in People standard was recognised with a 10 year service award.

The Future

-ends-

Established in 1850 and with assets in excess of £2.5 billion, Stroud & Swindon is the 15th largest of the 63 building societies in the UK.

For more information, please contact:-

 

David Hill, Chief Executive, tel. 01453 768404

David Greenleaf, Corporate Communications Manager,  tel. 01453 768244