Stroud & Swindon Building Society AGM
The 156th Annual General Meeting of the Stroud & Swindon Building Society took place at the home of Forest Green Rovers FC on Thursday 19th April.
Making a joint presentation, Mike Bramall, Chairman and David Hill, Chief Executive, were able to report on another successful year for the Society.
Highlights included:-
- Asset growth of 12.1% to £2.8 billion
- Pre tax profit of £9.1 million
- Management Expense Ratio down to 0.76%
- Net retail receipts of £144 million
- Gross new mortgage lending of £745 million
Mike Bramall said, ”Our financial results continue to show strong but sensible profits aligned to consistent growth with assets increasing by 12.1% and pre tax profit of £9.1 million. The real demonstration of efficiency and good value has however been the continued low management expense ratio of 0.76%, one of the best in the industry, and a further reduction in our net interest margin from 1.13% to 0.98%.The latter is real evidence of our ability to pass on operational efficiencies to our members.
The mortgage market in 2006 confounded many peoples’ expectations. House price levels increased by nearly 10%, much higher than had been forecast. To meet the need, we offered a range of attractive mortgage products. These included a First Time Buyer mortgage with no deposit and increased lending multiples, fixed rate and tracker products as well as very competitive buy-to-let mortgages. The appeal of these products resulted in gross new mortgage lending of £745 million.
The savings market has been characterised by a continuing low interest rate environment, albeit rates did increase in late 2006 and in early 2007. Nonetheless, innovative products like the Platinum 50 Account for the over 50s and our Regular Savings Account that consistently appeared in best buy charts, contributed to a net inflow of funds of £144 million in the year.”
David Hill commented on the continued strong support of the Society’s branch and agency network by members and the success of the Society’s call centre in Stroud, the expansion of which was now leading to the need for alternative premises. He stressed that this would remain firmly within the immediate area. He also spoke about the Society’s continuing support for local charities, including the Willow Trust {to which a total of £13,000 was donated in 2006].
Looking to the future, he said, “We expect to see the financial services market remaining highly competitive with increasing competition and very attractively priced products. Stroud & Swindon is confident that it can compete effectively within this market and remains committed to continuing as an independent building society providing its customers with excellent customer service and providing strong support to the local community.”
There were strong votes in favour of all resolutions including a rule amendment which will allow for optional on-line voting in 2008. All directors were elected with majorities of at least 93%. St Rose’s School in Stroud, a specialist school for children with physical disabilities and associated difficulties will be the beneficiary of a cheque for £2,234.50 resulting from 10p being donated for every vote received.
-ENDS-
For further information please contact:
David Hill
Chief Executive
Stroud & Swindon
01453 768406
David Greenleaf
Corporate Communications Manager
Stroud & Swindon
01453 768244
Lee Blackwell / Brian Thorn / Karen Butcher
The Wriglesworth Consultancy
020 7845 7900
Notes to Editors:
Stroud & Swindon is the 15th largest building society in the UK with assets in excess of £2.8 billion. The Society operates through a dedicated team of intermediary business development managers, with a branch network of 22 offices and 21 agencies in the South West, complemented by a direct call centre based in Stroud and website www.stroudandswindon.co.uk.