Encouraging results in a difficult year
Mar 18, 2010
Despite the most difficult and challenging year in terms of the markets and the economic downturn the Society has seen profits return to 2007 levels, high liquidity maintained and cost ratios reduced. Net profits for 2009 were £733,000 and even though the Society suffered a small decrease in total assets the management expense ratio fell for the ninth year in succession to 62 pence per £100 of assets. These results show the stability of the Society during an unprecedented time of instability within the financial services industry as a result of failures in the sector.
The Society’s Board considered that the most important issue for 2009 was to provide a safe and secure home for savers in the aftermath of the failures and government bailouts that had occurred. To this end mortgage lending was restricted to maintain high liquidity levels.
Whilst gross mortgage lending was down 50% on 2008 levels at £13.3 million, this resulted in only a slight reduction in the total size of the mortgage book of 1.4%. The quality of the Society’s mortgage book remains strong with an average loan to value below 50%.
Intense competition for savers money, particularly from government owned institutions was a significant challenge in 2009 and will continue into the current year. In view of this the Society has developed further its Business Deposit Account facility for Limited Companies, Partnerships, Sole Traders, Clubs and Charities by creating an Online version of the account which has proved to be very successful in attracting savers deposits. Although total savers balances fell by £4.3 million this was mainly due to the closure of the Society’s Pocklington branch in March 2009.
The Society’s Board are confident that the Beverley is well placed to deal with the challenges that still lie ahead and can continue to offer competitive savings and mortgage products to existing and new members.
