TIDMNBSR
RNS Number : 3097R
Newcastle Building Society
05 March 2021
NEWCASTLE BUILDING SOCIETY ANNOUNCES
2020 FINANCIAL RESULTS
Key Highlights
* Operating profit (before impairments) of GBP16.4m,
maintained at 2019 levels
* Due to increased impairments in the year, profit
before tax was GBP2.0m
* New savings customers: 13,877
* New branch customers: 6,069
* New mortgage customers: 5,206
* New first time buyers helped in purchasing their own
home: 915
* Record mortgage lending in the second half of the
year, supported by strong savings balance growth
through our branches
* We reduced our Standard Variable Rate (SVR) for
residential mortgages to 3.96%
* Awarded Platinum Investors in People accreditation,
progressing on from our previous Gold award
* Built and launched our popular mobile savings app
* Colleague engagement scores increased further to an
employee net promotor score of +45
* Awards:
o North East Charity Awards (Outstanding Charity Support by
Large Companies)
o Mortgage Finance Gazette (Community Services)
o North East Contact Centre (Business Continuity & Innovation)
o What Mortgage (Best Regional Building Society) for the fourth
consecutive year
* Supported multiple clients of our savings management
outsourcing subsidiary Newcastle Strategic Solutions
in winning no fewer than 21 industry awards
* GBP1.5m community commitment, which included two
initial payments totalling GBP850,000 to Newcastle
United Foundation, supporting the building of
exciting new community facility, NUCastle, powered by
Newcastle Building Society
* A higher percentage of our new lending was to people
in the North East, Cumbria and North Yorkshire
heartland from 14.5% to 16%
* Over GBP66m invested through our advice subsidiary,
Newcastle Financial Advisers
* Supported 4,687 borrowers who requested mortgage
payment holidays
* Launched deposit booster mortgage to help first time
buyers
* Customer engagement scores increased further to a net
promoter score of +78
Chief Executive's Statement
Our Performance
Despite the challenges in the year, the underlying business
performance was strong, not just in our response to the pandemic
and the overall operational, trading and financial performance of
the business, but also in our commitment to maintaining
progress.
We welcomed over 6,000 new branch customers, growing our savings
book by GBP376m (11%). Helped by our market leading triple access
saver and competitive bonds across the year, our strong retail
savings balances provided a solid foundation for our mortgage
lending. More than 5,000 new lending customers joined the Society.
Our Gross mortgage lending for the year was GBP645m and net core
residential lending GBP228m (GBP575m in 2019).
Operating profit before impairments and provisions was stable at
GBP16.4m (GBP16.3m in 2019). As a result of the impact of Covid-19
on the economic environment, impairments and provisions were
GBP14.4m (2019: GBP1.6m). Group profit before tax was GBP2.0m for
the year ended 31 December 2020, compared to GBP14.7m for 2019.
Total operating income increased by 6% to GBP79.2m in 2020
(GBP74.4m in 2019). Offsetting income is overall management
expenses, which include business administration and depreciation
expenses. Management expenses increased to a cumulative GBP62.8m
from GBP58.1m in 2019, reflecting increased non-recurring costs
associated with the Group's response to the Covid-19 pandemic,
further investment in colleagues, our technology infrastructure and
the branch network during the year.
The Society's net interest margin reduced to 0.87% from 0.91% in
2019 reflecting the competitive nature of the mortgage market. Net
interest income increased by GBP3.3m to GBP40.2m due to the
reduction in the Bank of England base rate and the fall in mortgage
yields in comparison to the fall in savings rates.
The Group's capital ratios remain robust with Common Equity Tier
1 ratio of 14.1% (2019: 13.9%) and Tier 1 ratio was 14.4% (2019:
14.3%). The Group complied with Individual Capital Guidance plus
capital buffers, as notified by the Prudential Regulation
Authority, throughout 2020.
The Society continued its focus on core residential lending
while winding down legacy portfolios. The net increase in customer
loans and advances was GBP183m overall in 2020 and included a
GBP228m net increase in core residential, of which GBP57m was in
buy to let and GBP45m was in respect of a reduction in our non-core
legacy mortgage portfolio.
The percentage of mortgages in arrears by three months or more
remain at low levels for 2020. Overall number of loans arrears have
seen an increase of 3bp to 0.36%.
The Group's liquidity, excluding encumbered assets, ended the
year at 19.1% compared to 15.8% in 2019. This is comfortably in
excess of the Society's minimum operating level.
A year like no other
The UK went into lockdown on 23 March. At that point, although
we knew that the situation was grave, we had no real appreciation
of what the course of the pandemic would be, or the depth of its
impact on us individually, on our families, our communities and our
working lives. It has been a life-changing event and for many
individuals and families, it has been both difficult and
distressing.
For all of us, the pandemic continues to curtail our
interactions within our wider communities: the communities of work,
of our friends and families, and of our local towns and high
streets. But the temporary loss of those things we might, at times,
have taken for granted has only served to renew their significance.
It has reminded us that as humans we need and value real life
interaction with others to enrich the experience of our day-to-day
life.
Our purpose, 'to connect our communities with a better financial
future', has been a powerful guide through the pandemic, helping us
maintain our focus on customers enabling effective decision making
in these fast moving and challenging times.
Although Covid-19 has had a profound impact on the Society's
operations during the year, our underlying business is still
performing well, reflecting our resilient core. It is encouraging
to be able to report that despite the property market having been
effectively closed for a period and the need to absorb significant,
non-recurring costs associated with Covid-19, the Group's operating
profit before impairments and provisions for 2020 was GBP16.4m
broadly in line with our performance in the previous year (2019:
GBP16.3m).
The knock on effects of the exceptional deterioration in the
macro-economic environment has resulted in a significant increase
in our credit provisions resulting in a pre-tax profit of GBP2.0m,
compared to GBP14.7m for 2019. This result also included a write
down in the value of our former head office building, Portland
House, which we have chosen to exit as it no longer meets our needs
as we evolve more flexible and efficient working practices. We
remain strongly capitalised and continue to operate with
appropriate levels of liquidity.
As a provider of an essential service, we have remained open for
business throughout lockdown. We have supported our communities and
strive to maintain this important focus as we also seek to play our
part in enabling recovery in our region. I'm pleased to report that
the pandemic has not prevented our Society achieving many of the
goals we had at the start of 2020. We have needed to be reactive to
fast changing environments and to deliver differently, but we have
done so with positive impact.
I would like to extend heartfelt thanks to our colleagues for
their incredible commitment, resilience and determination in facing
into the challenges of 2020 and for what we have achieved together.
Many of the team's achievements would have been excellent in any
ordinary year, but given the circumstances, they were truly
remarkable.
Our region and purpose
We are the North East's largest building society with assets
which have grown to GBP4.9bn (up from GBP4.4bn in 2019) and 30
branches across the North East, Cumbria and North Yorkshire. As an
employer of more than 1,200 people and a purpose-led organisation
we are committed to the people and places that make up our
heartland.
Delivering our purpose, 'to connect our communities with a
better financial future', is both a personal endeavour for
colleagues and a shining example of what it really means to be a
mutual, customer-owned organisation. It is also a sound foundation
on which to build a sustainable, successful commercial enterprise
which will benefit our Members and their communities in both the
present and for the long term. Our consistently high levels of
customer and colleague engagement ensure that we remain connected
to our purpose and focused on delivering lasting, authentic
relationships with our Members.
We continue to provide opportunities for local people to build
meaningful careers, encouraging the diversity of those who join us
from a variety of backgrounds and providing opportunity for all our
colleagues to make a real and positive difference to the people and
places that mean the most to them. We continue to support and work
with our communities to create positive change, through a variety
of partnerships and the provision of ongoing, significant financial
support, acting quickly in the pandemic to commit funding when our
communities need help more than ever.
We remain committed to delivering face to face services on our
high streets. We believe that digital and physical distribution
need to co-exist if we are to serve all our customers well. For us,
technology is best deployed to enhance the quality of our human
interactions, not just to replace them. The pandemic has served to
reinforce this, as we have all come to realise just how much we
were taking human interactions for granted.
We continue to invest in our shared future: building our brand
through our communities; and creating commercial success through
our scale, experience, skills and specialisms - including our
leading edge digital and IT capabilities that serve the Society and
other clients of our Newcastle Strategic Solutions subsidiary.
Building lasting, authentic relationships with our customers
In a year where service was interrupted significantly by so many
external events and it was simply not possible to deliver our usual
personal service, we were pleased to maintain very high customer
satisfaction scores. In 2020 we achieved a satisfaction score of
95% per cent (2019: 95%).
Our net promotor score (NPS) measures the loyalty of our
customer relationships and is driven by the quality and value our
colleagues deliver to our customers. We enhanced our NPS tracking
in 2020 to include all channels and were very pleased to record a
score of 78. This compares very favourably on a like-for-like basis
with the previous year's score of 76 and is at the higher end of
the spectrum - NPS scores range from -100 to +100.
Our continuous online and mobile 'Customer Voice' survey
provides valuable, real time feedback for us and we will be
supplementing this in 2021 with the introduction of a dedicated
customer panel.
Helping people save and plan their finances
We have remained open for business throughout lockdowns,
providing uninterrupted access to the essential services we
provide: on the high street, over the phone and through our digital
channels. We have continued our sensible lending and the provision
of mortgages, we have maintained convenient, local access to our
savings service for our customers and continued to provide
financial advice. Throughout, our priority has been to keep our
customers and colleagues safe through the implementation of
rigorous safety procedures and by extending our support for
customers negatively impacted financially by the pandemic.
Safety measures were implemented for colleagues and customers,
whose essential needs necessitated a branch visit. These included a
one in one out policy; social distancing; safety screens; face
coverings and masks for colleagues; colleagues working in small
bubble teams; and reduced branch opening hours. These actions
protected customers' access to cash and other key services and were
reinforced by a partnership with the Post Office to provide local
cash access to vulnerable customers in the event of an unavoidable
branch closure.
Our Newcastle Financial Advisers subsidiary, which provides
financial advice across our branch locations, experienced its best
ever year for new investments. More than ever, customers have
appreciated advice and guidance through these tumultuous times and
while face-to-face advice sessions had to be reduced in response to
Covid-19, the introduction of video and phone meetings ensured
ongoing support for customers.
Our commitment to our high streets and the delivery of face to
face services remains as strong as ever. We strive to make our
branches even more welcoming, and human: a place where we aim to
show that we are keen to listen and understand our customers' needs
and where time is a commodity we are keen to share.
Prior to lockdown we formally opened our two new community
partnership branches in Hawes in North Yorkshire, and Wooler in
Northumberland - locations which had been left isolated on the
closure of their 'last bank in town'. Both branches have been very
positively received by local people, delighted to see financial
services return to their high street, even through this troubled
period. Embedded in the community, we have become part of the
community, playing an integral role as part of a community hub at a
fraction of the cost of a full scale branch.
Our branch network across the North East, Cumbria and North
Yorkshire has maintained essential transactions and services for
customers and the otherwise financially excluded. All but one of
our branches have provided ongoing services throughout for
essential transactions, with the exception of our Yarm Library
branch, which was closed as part of a wider local council decision
to close library locations.
As part of a strategic review of our core working locations we
recently announced our intention to vacate our Portland House head
office building in the centre of Newcastle. One of our two
city-centre branches, our Portland House branch is integrally
connected to the main Portland House head office building, and
therefore closed in early 2021. Our Portland House branch customers
were welcomed and will be served by our nearby Northumberland
Street branch.
We have renewed our commitment to our ongoing, multi-million
pound branch upgrade programme and where appropriate, to expanding
our regional presence. We are currently working on an exciting new
community branch in Tynemouth and we expect to announce progress on
this second library partnership in 2021.
During the crisis the Bank of England reduced base rate to
record low levels of just 0.1%. After much consideration, the
Society made the decision to pass a corresponding rate reduction
onto our variable rate savings customers. We continued to introduce
new competitively priced fixed rate savings products through our
branches.
Our average savings rate in 2020 was 0.49% higher than the
market average for banks and building societies, based on CACI's
independent financial benchmarking data.*
*CACI Current Account and Savings Database, Stock, including
fixed and variable rates. CACI is an independent company that
provides financial benchmarking data which covered 87% of the cash
savings market in 2020. Data correct as at 8th February 2021.
Some of our savings products have financial penalties if they
are closed ahead of the agreed term end. Where health issues or
difficulties caused by Covid-19 made this necessary, we ensured
customers could access their savings quickly and without penalty.
This commitment was applied across all our savings products, with
the exception of the Lifetime ISA which has a separately applied
Government penalty.
Helping people own their own home
The housing market bounced back following the initial lockdown
period, and has since experienced a high level of mortgage
transactions, house sales and an overall increase in house prices,
supported by continuing low interest rates.
The majority of our mortgage lending is done through UK-wide
networks of mortgage brokers, and throughout 2020 we continued to
build the depth of our relationships across this channel,
increasing our intermediary distribution to 90% market coverage.
Our service and response levels, along with the short time to offer
we have maintained during the pandemic, have positively
differentiated us from other providers.
The Society over performed against its plan, introducing more
than 5,000 new mortgage customers to the Society, and helping over
900 first time buyers.
Following the announcement of the financial support package in
response to Covid-19 by the Government and set out by the Financial
Conduct Authority (FCA), the Society quickly responded to customer
concerns, to requests for mortgage payment holidays, and for
flexibility in repayments for those borrowers struggling to pay
their mortgages as a result of Covid-19.
Where customers can afford to re-start their mortgage payments
it is in their best interests to do so, but some may need
additional support and for longer. The FCA extended the time to
apply for a payment holiday initially to the end of October 2020
and then to 31 March 2021. We have provided payment deferral
support to our mortgage customers experiencing financial difficulty
as a result of the pandemic and will be investing significantly in
a mortgage processing transformation programme in 2021 to
facilitate further efficiency and even better customer service
levels.
We were also very pleased to announce a significant reduction in
our mortgage standard variable rate (SVR) to 3.96% from 5.99%,
effective from 1 December 2020. SVR is the interest rate normally
charged once a fixed, discount or tracker rate mortgage deal comes
to an end. The change will positively impact all our customers
currently on our SVR and SVR-linked products.
During and post lockdown, our focus has been on remortgages and
mid loan to value mortgage products as part of our sensible lending
policy. We introduced additional options to our mortgage range
which included a new Joint Mortgage Sole Proprietor five year fixed
rate mortgage, which enables family members to help close relatives
own their own home, increasing the borrowing power of the applicant
by allowing them to apply for a mortgage using the supporting
income of a family member. This was supported by competitively
priced 80 per cent loan to value mortgages with rates as low as
1.89% and rate reductions on our five year Buy to Let mortgage
proposition of up to 0.20%.
Investing to help our communities make positive changes
We've made it a priority to increase support for our region's
local communities during these troubled times, and I'm proud that
we made a GBP1.5m commitment to good causes this year focusing our
impact where it's needed most, and aiding our region's
recovery.
This support for communities included the launch of a GBP1.1m
partnership in July with Newcastle United Foundation, to deliver
the redevelopment of the Murray House Recreation Centre in the City
Centre into a hub for sports, education and wellbeing. The new
centre will be known as 'NUCastle, powered by Newcastle Building
Society'. With planning approved and the project underway,
GBP850,000 has already been committed to support the build. Our
relationship with the Foundation will also see us support the
NU:Futures employability outreach programme, targeting thousands of
schoolchildren and hundreds of young people not in education,
employment and training across North of Tyne.
We launched our community grants programme in 2016 working with
the Community Foundation Tyne & Wear and Northumberland. At the
end of 2020 we reached a major milestone and celebrated GBP1m
awarded in grants to charities and community groups across the
North East, Cumbria and North Yorkshire. In 2020 the ongoing
programme of community grants, awarded GBP179,000 to groups in our
region most affected by the pandemic, including food banks;
hospices; and charities providing support for cancer, dementia and
older or isolated adults. These grants are made from the Newcastle
Building Society Community Fund at The Community Foundation.
In addition, the Society donated GBP100,000 to launch the
Community Foundation Tyne & Wear and Northumberland's
Coronavirus Recovery & Response Fund, which has directed
support to a wide range of groups and charities across the region.
We also continued to provide ongoing financial support to the
incredible Sir Bobby Robson Foundation and to The Prince's Trust, a
valued partner in helping us deliver greater inclusion and
improving the prospects of young people in our region.
Our efforts to help our communities make positive changes saw us
contribute in numerous additional small but creative ways, often
building on ideas suggested by colleagues. We worked with North
East specialist medical cream manufacturer, Nursem, in its quest to
provide free hand cream to our local nurses at the frontline of
clinical care who suffer the drying effects of frequent hand
washing and sanitising. We also donated a vital supply of much
needed, hand sanitiser to communities in the Yorkshire Dales,
partnering with a local, Yorkshire Dales-based distillery.
The application of new technologies can be a powerful way to
bring people closer together and we continue to explore new
opportunities to incorporate these technologies into our services.
Our partnership with the National Innovation Centre for Ageing and
tech for good company, onHand, has successfully connected our
amazing colleague volunteers with local people needing support with
minor tasks via a mobile app. This initiative has been particularly
relevant during the pandemic, being able to operate within strict
safety guidelines to keep all parties safely socially
distanced.
Investing in our colleagues
We employ more than 1,200 people across our head office and
branch locations. Measuring our employee net promoter score (eNPS)
value tells us a great deal about how well our colleagues
understand and are engaged with our purpose and their commitment to
the Society and our customers. At the year end, we achieved a
record high colleague eNPS of +45 which positioned us in the top 25
per cent of our survey provider's global finance sector
benchmark.
We were delighted to receive the Platinum Investors in People
accolade this year, progressing from our previous Gold award and
putting us in the top three per cent of organisations nationwide
assessed as part of the standard. This recognises the hard work of
our human resources team, our leaders and our managers in
establishing the policies and practices that support our colleagues
be the best they can be. Being a Platinum-accredited organisation
proves that right across the organisation, our people believe in
the vital role they play in the success of the business.
The Society participated in the Government's Coronavirus Job
Retention Scheme earlier in the year. This enabled us to keep all
colleagues in their jobs and protect their livelihoods through a
period of widespread and extreme uncertainty, when it was far from
clear that all roles could otherwise be retained. All colleagues
who were furloughed were able to return to their roles as the year
progressed. Having seen a much more stable operating environment
and a strong recovery in the housing market since the early days of
the pandemic, we decided that it would be appropriate to return the
Job Retention Scheme funds we had claimed, in full, to the
Government, to the sum of around GBP600,000.
As a result of the Covid-19 pandemic changes to working
locations, the majority of the Society's head office workforce has
been working from home this year, with only a small number of
colleagues working in Portland House and Cobalt Park. We intend to
vacate our City Centre Portland House building and to make our
extensive 100,000 square foot office space at Cobalt Park our main
home while we complete a strategic property review. This will
include consideration of new and upcoming commercial property
developments in Newcastle City Centre, along with new ways of
working, informed by colleague preferences and work life balance
aspirations.
As part of a continuous conversation with colleagues via our
Colleague Voice survey tool, we have also introduced a Colleague
Insight Forum which will help provide additional layers of feedback
and will be used to guide and shape a range of decisions.
Our focus on mental and physical colleague wellbeing continues
and we are pleased to see how many of our colleagues are engaging
with the various programmes and initiatives underway designed to
help us manage the challenges we may face. Colleague wellbeing has
been a consistent focus through the year. An additional day of
holiday over the Christmas period and a 2021 special birthday day
off were some of a number of wellbeing measures introduced across
the Society.
Although the Society will not be paying any performance related
colleague or Executive bonuses this year, in recognition of the
challenges that 2020 has posed and the outstanding response of
colleagues, we have made a three per cent colleague recognition
payment as thanks. This payment does not apply to Executives.
A core part of our early talent programme is our apprenticeship
programme. We continue to welcome apprentices into the Society
across a range of functions and were thrilled to be rated in the
top 20 of Rate My Apprentice Top 100 Employers (and to be rated
first in financial services!).
We've been working with Common purpose to support their Young
Leader programmes by speaking at events and have had 21 of our own
young people participate in the young leader programmes, which were
delivered virtually this year.
Investing in technology, helping our clients succeed
Maintaining essential financial services during Covid-19, while
keeping our colleagues safe, necessitated a significant change in
working practices as all but around 200 colleagues moved to work
remotely, from home. Revolutionising our working environments while
maintaining great service for our customers and clients is a
tribute to the hard work, flexibility, and personal commitment of
colleagues, our operational resilience team and our Newcastle
Strategic Solutions subsidiary IT teams.
Using the convenience and speed of modern digital technologies
plays a vital role in enriching the face to face experiences and
deepening the personal relationships that we build with our Society
customers.
This was enhanced by the introduction in 2020 of a mobile
savings app which allows customers to check their online savings
accounts whilst on the go. The app features easy-to-access balance
and transaction information and uses secure cloud and biometric
technology to allow customers to access their account information
quickly and safely. The app has proved highly successful with
Society savers, and a number of Solutions clients are in turn
making it available to their own savings customers.
The Solutions subsidiary has continued to make a solid
contribution to group profits, and helped its clients win
recognition for savings service with 21 national awards this year,
alongside welcoming two new SME-focused challengers as clients,
Recognise Bank and B-North.
Through the Solutions subsidiary the Society continues to invest
significantly in cyber security, IT infrastructure, and to provide
a regional focus and fertile technology skills hub providing career
opportunity to grow the region's dominance of this area.
Summary and look ahead
2020 has been a year unlike any other but in many ways has
served to underline the importance of our purpose, to connect our
communities with a better financial future.
Our purpose has been an anchor point and a focus, both of which
have helped us to steer through these uncertain times.
We aspire to exit this period of crisis and recovery in a
stronger position than we might have expected to achieve without
this experience - even closer to our customers and moving forward
with purpose and momentum. We recognise that this will not be
without challenge and will require a need for caution in a period
of severe economic stress and facing the broader impact of the
Covid-19 pandemic.
We will be even more aligned to our purpose-led strategy, better
serving our customers and communities. We will continue to invest
in our technology and our people, who have inspired us in the past
year with their dedication and resilience, in getting the job done
to ensure the needs of our customers and clients are met.
Perhaps more than ever, through these most difficult days, we
have come to recognise just how much we value interaction with
other humans and just how powerful the concept of a mutual business
can be. We will therefore, continue to strive in the years ahead to
be not only technologically enabled, but be more, not less human;
closer and more connected with our communities, our colleagues, our
clients and most importantly of all, our customers.
Andrew Haigh
Chief Executive
4 March 2021
NEWCASTLE BUILDING SOCIETY
PRELIMINARY ANNOUNCEMENT
for the year ended 31 December 2020
SUMMARY CONSOLIDATED INCOME STATEMENTS
2020 2019
GBPm GBPm
Interest receivable and similar income
Interest income calculated using effective interest rate 91.6 90.8
Interest recognised in respect of insurance contracts 12.7 13.6
Net expense on derivatives hedging mortgage assets (21.4) (18.8)
----------- -----------
Total Interest receivable and similar income 82.9 85.6
Interest payable and similar charges (42.7) (48.7)
Net interest income 40.2 36.9
Other income and charges 39.7 37.0
Gains less losses on financial instruments and hedge accounting (0.7) 0.5
Administrative expenses (57.9) (53.9)
Depreciation and amortisation (4.9) (4.2)
Operating profit before impairments and provisions 16.4 16.3
Impairment charges on loans and advances to customers (10.5) (1.5)
Impairment charges on property and equipment (3.8) -
Provisions for liabilities and charges (0.1) (0.1)
Profit for the year before taxation 2.0 14.7
Taxation expense (0.6) (3.3)
Profit after taxation for the financial year 1.4 11.4
=========== ===========
SUMMARY CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
2020 2019
GBPm GBPm
Profit for the financial year 1.4 11.4
------- -------
Other comprehensive income:
Items that may be reclassified to income statement
Movement on fair value through other comprehensive
income 0.6 0.9
Income tax on items that may be reclassified to income
statement (0.2) (0.1)
Total items that may be reclassified to income statement 0.4 0.8
------- -------
Items that will not be reclassified to income statement
Post-retirement defined benefit remeasurements (0.2) (0.8)
Other non-classified items 0.1 -
------- -------
Total items that will not be reclassified to income
statement (0.1) (0.8)
------- -------
Total comprehensive income for the financial year 1.7 11.4
======= =======
SUMMARY CONSOLIDATED BALANCE SHEETS
2020 2019
ASSETS GBPm GBPm
Liquid assets 1,109.7 862.5
Derivative financial instruments - 0.1
Loans and advances to customers 3,477.9 3,295.1
Fair value adjustments for hedged risk 214.3 186.6
Non-current assets available for sale 4.9 -
Intangible assets 5.7 2.5
Property, plant and equipment 34.8 46.5
Fixed and other assets 17.0 18.8
TOTAL ASSETS 4,864.3 4,412.1
=========== ========
LIABILITIES
Shares 3,776.3 3,400.9
Deposits and debt securities 628.0 579.4
Derivative financial instruments 214.3 185.9
Other liabilities 18.2 20.1
Subscribed capital 20.0 20.0
Reserves 207.5 205.8
TOTAL LIABILITIES 4,864.3 4,412.1
=========== ========
SUMMARY CONSOLIDATED CASH FLOW STATEMENTS
2020 2019
GBPm GBPm
Net cash inflows from operating activities 227.3 189.0
Corporation tax paid (2.2) (1.3)
Payment into defined benefit pension scheme (0.2) (0.8)
---------- ---------
Cash inflows from operating activities 224.9 186.9
---------- ---------
Cash (outflows) / inflows from investing activities
Purchase of property, plant and equipment (5.6) (8.6)
Sale of property, plant and equipment - 0.4
Purchase of investment securities (110.7) (213.5)
Sale and maturity of investment securities 158.8 127.2
---------- ---------
Net cash inflows/(outflows) from investing activities 42.5 (94.5)
---------- ---------
Cash outflows from financing activities
Interest paid on subordinated liabilities - (0.8)
Interest paid on subscribed capital (2.3) (2.3)
Repayment of subordinated liabilities - (25.0)
Payments for finance lease arrangements (1.2) (0.9)
Net cash outflows from financing activities (3.5) (29.0)
---------- ---------
Net increase in cash 263.9 63.4
Cash and cash equivalents at start of year 226.4 163.0
---------- ---------
Cash and cash equivalents at end of year 490.3 226.4
========== =========
Summary of key financial ratios 2020 2019
% %
Gross capital as a percentage of shares and borrowings 5.17 5.67
Liquid assets as a percentage of shares and borrowings 25.2 21.7
Profit for the year as a percentage of mean total assets 0.03 0.28
Management expenses for the year as a percentage of mean total assets 1.35 1.45
Notes
1. The financial information set out above, which was approved
by the Board of Directors on 4 March 2021, does not constitute
accounts within the meaning of the Building Societies Act 1986.
2. The financial information for the years ended 31 December
2020 and 31 December 2019 has been extracted from the Accounts for
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(END) Dow Jones Newswires
March 05, 2021 02:00 ET (07:00 GMT)
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