NOTP Notts.b/s.7 7/8

RNS Number:6327N
Nottingham Building Society
08 February 2008


The Nottingham delivers robust performance in 2007

In advance of announcing its full results for the year ended 31 December 2007 
later this month, Nottingham Building Society today provides a trading update.

For the year ended 31 December 2007:

*  Mortgage lending was approximately �700 million - a record (20% up on 2006);
*  The mortgage book grew by more than 10%;
*  The gradual expansion into the buy to let and commercial lending markets has 
   continued with close attention given to credit quality;
*  The quality of the mortgage book remains high and arrears levels are well 
   below the industry average. Only three accounts, out of 29,000 mortgages, 
   were over 12 months in arrears;
*  The Nottingham has no exposure to the sub-prime market;
*  Retail savings, reserves and capital fund over 95% of the mortgage book;
*  The financial position remains strong.

Ian Rowling, Chief Executive, commented:

"Against a backdrop of challenging market conditions, we made solid progress and 
delivered a number of records during 2007.

"In the second half of last year the markets experienced unprecedented
turbulence. As a building society the majority of our funding comes from the
retail savings of our members. This placed us in a better position than some
other institutions when the credit crunch took effect.

"Margins narrowed in 2007, however our underlying profit performance and capital 
position remain strong as our results, when published, will show.

"Some aspects of the performance of our estate agency, Nottingham Property
Services, were disappointing and we will be recording a loss for that part of
our business. Following a thorough review, we have announced proposals to
withdraw our estate agency service from four branches where there has been
reducing customer demand. We will continue to offer our full building society
service in these locations. Of a workforce of more than 500 employees, 18 jobs
are at risk as a result of our proposal, and consultation with the individuals
affected, the trade union Unite and our own staff council is underway.

"We remain committed to providing an integrated home buying and selling service
in our heartland trading area where there is a demand for it. It provides a
clear link between the home buying aspirations of customers and our role as a
mortgage provider.

"The general economic outlook for 2008 remains uncertain. The Nottingham is well
placed to progress in these changing conditions and to provide our members with
a vibrant, successful organisation and a safe and trusted home for their savings
and mortgages."

Notes

*  The financial numbers quoted in this document are preliminary and subject to  
   audit.

*  Founded in 1849, The Nottingham is one of the UK's top 20 UK building 
   societies.

*  The Nottingham established its estate agency business in 1989. It offers 
   estate agency services in 19 of its 32 branches in Nottinghamshire, 
   Derbyshire, Lincolnshire and South Yorkshire.

*  On 7 February 2008, The Nottingham started a period of consultation with the 
   trade union, Unite, and its staff council. This will take at least 30 days, 
   and a final decision to withdraw the estate agency service from four 
   locations - Cleethorpes, Long Eaton, Newark and Worksop - will be taken once 
   this consultation has concluded.

*  The Nottingham is currently contacting the small number of customers affected 
   and has arranged a number of options to ensure they experience minimal 
   disruption to the sale or purchase of their home.




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            The company news service from the London Stock Exchange
END

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