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Building SocietiesDatabase 2010Insights into the shape of UK Building Societies

FINANCIAL SERVICES

CELEBRATING 20

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AUDIT n TAX n ADVISORY

Welcome to the 20th edition of KPMG’s annual Building Societies Database

I am pleased to introduce the 20th edition of KPMG’s annual

Building Societies Database.

This survey summarises - in a series of tables of statistics, ratios

and rankings - the financial performance of all the current UK

building societies.

If you would like to know more about the wider services which

KPMG provides to the retail financial services sector, please

contact me or any of the contributors to this document.

Richard GabbertasPartner, KPMG’s Financial Services practice

September 2010

KPMG LLP

1 The Embankment

Neville Street

Leeds LS1 4DW

Tel: 0113 231 3000

Fax: 0113 231 3139

Email: [email protected]

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity. All rights reserved.

ContentsForeword from Richard Gabbertas

Introduction from Paul Boothroyd

Market Outlook from Simon Walker

Tables - Peer Group 1



Explanation of the tables, statistics and ratios

3

4

10

13

22

31

40

Building Societies Database 2010 3

mailto:[email protected]

Introduction and Methodology

Paul Boothroyd

Senior Manager,

KPMG’s Financial Services practice


Tel: 0113 231 3329

The Building Societies Database 2010 (Database 2010) provides financial information relating to the 52 building societies in the United Kingdom as at April 2010, prior to the merger of Chelsea BS with Yorkshire BS.

All data for building societies has been extracted from The reduction is due to Britannia BS (previously ranked

published sources, being primarily the latest financial no 2) merging with The Co-operative Financial Services

statements of the societies for financial year ends on 1 August 2009.

between August 2009 and April 2010. Latest available Since April 2010 there have been three further mergers:

numbers for branches, borrowing members and investing

members are as published in the Building Societies • 1 April: Chelsea BS (no 5) merged into Yorkshire BS (no 2)Association Yearbook 2009/2010.

• 1 June 2010: Chesham BS (no 39) merged into Skipton Availability of Database 2010 BS (no 4)This survey is a key component of KPMG’s commitment

• 1 September 2010: Stroud & Swindon BS (no 11) merged to the UK building societies sector. Therefore both the

with Coventry BS (no 3).commentary and the tables are available to anyone with an

interest in UK building societies and can be requested in These three societies have been included independently the following formats: this year as their November and December 2009 accounts

• Printed were publicly available.

• PDF In addition, in August 2010, Kent Reliance BS (No 13)

• Microsoft® Office Excel® (including or excluding announced that it is seeking to restructure its business in

the inputs). a proposed deal that will involve the society transferring its

business, assets and liabilities to a new bank that will be To download a copy visit: www.kpmg.co.uk/banking.

a subsidiary of a new industrial and provident society. Printed and/or prior editions are available on request by

The key feature of this proposed deal is the injection of emailing [email protected]

£50 million of capital into the new bank by a private equity

Number of societies firm. The transfer is expected to be completed in 2011,

Database 2010 comprises 52 societies, compared to 53 in subject to a number of conditions which include approval

Database 2009. by the society’s members and by the FSA.





“ Nationwide continues to dominate the building societies sector, even more so with the departure of Britannia.”

Asset groupingsThe 52 building societies are grouped into three peer

groups based on asset size, and ranked within each peer

group. Other than Britannia BS, these peer groups are

unchanged from those in Database 2009.

Group versus society dataReaders should be aware that some tables analyse group

data whereas a number are based on society only data.

Each table makes this clear at the top of the relevant

sections.

Note in particular that in Tables 1, 2a and 2b, society only

data is included as group data where a society does not

prepare group accounts. Such societies are highlighted

with an asterisk in these tables.

Bases of the ratiosThe detailed bases for all data, statistics and ratios are set out

in the Explanations section at the back of Database 2010.

No significant changes have been made from the Database

2009 tables.

Total sector group and society assetsIn Database 2010 the 52 societies held total group assets

of £319.5 billion, compared to Database 2009 total

group assets of £370.5 billion. Total group assets have

decreased by £51 billion, due to a combination of the

merger of Britannia BS with The Co-operative Financial

Services and balance sheet shrinkage across the sector.

Total sector asset movements are analysed as follows:

Group £billion

Society £billion

Database 2009 total assets 370.5 373.5

Less Britannia BS (assets as at 31 December 2008)

(37.2) (33.2)

Adjusted 2009 total assets 333.3 340.3

Sector shrinkage: 2009 to 2010 (excl Britannia)

(13.8) (16.9)

Database 2010 total assets 319.5 323.4

Sector shrinkage (excl. Britannia) 2009 to 2010

(4.1%) (5.0%)

Prior year sector growth (incl. Britannia) 2008 to 2009

4.6% 6.7%

Of the 2010 total sector asset shrinkage of £13.8 billion,

approximately £11 billion has come from Nationwide BS

with the balance of £2.8 billion from the other societies.

Nationwide continues to dominate the building societies

sector, even more so with the departure of Britannia.

Nationwide’s total assets at April 2010 were £191.4

billion, representing 59.9 percent of building society

sector total assets (Database 2009: £202.4 billion

representing 54.6 percent of total sector assets).

The higher society only total assets continue to be a

result mainly of the accounting implications of covered

bonds issued by the larger societies, in particular

Yorkshire and Coventry.


Balance sheet changes A key balance sheet feature is that 35 societies have

reported a reduction in total group assets, including 13

of the 16 societies in Peer Group 1. The three societies

in Peer Group 1 reporting increases in total assets

were Coventry, Skipton and Cumberland: Skipton being

impacted by the addition of total assets of £2.6 billion on

the merger with Scarborough in March 2009.

The highest asset growth achieved in the sector was 37.7

percent by Swansea, which has moved the society up to

the 41st ranking within Peer Group 3.

The reduction in total assets for many societies is a result

of a combination of the following key trends:

• 34 societies have reduced society FSRP loan books

• 42 societies have reduced society FSOL loan books,

including all of Peer Group 2

• 22 societies have reduced total shares, although 12 of

the 16 Peer Group 1 societies reported an increase in

total shares.

Other significant balance sheet statistics include:

• Liquidity: a mixed picture with 32 societies reporting

an increase in their proportion of liquid assets to total

shares and deposits, probably due to a combination of

increased FSA regulatory expectations, low mortgage

lending activity and a comfort factor: however,

conversely, 20 societies have reported a reduction in

their liquid asset ratio

• Lending Limit: 37 societies have reported a decrease,

thus showing a clear move by the sector to core

residential property lending

• Funding Limit: similarly, 37 societies have reported a

reduction in their funding limit ratio, thus showing a

clear move to less reliance on wholesale funding

• Total reserves as a percentage of total assets: 40

societies (including 13 of the 16 Peer Group 1 societies)

reported an increase in this ratio, which has benefited

from the low or negative asset growth

• Gross and Free Capital: 38 societies reported an

increase in their Gross Capital ratio and 38 societies

also reported an increase in the Free Capital ratio; these

ratios benefiting from the low or negative changes in

shares and wholesale funds.“ A key balance sheet feature is

that 35 societies have reported a reduction in total group assets, including 13 of the 16 societies in Peer Group 1.”




Profitability trendsGiven the continuing difficult market conditions, it is not

surprising that societies have continued to report low

profitability. Database 2010 shows 19 societies with a

reduced profit for the year and 6 societies (5 of these

in Peer Group 1) reported a loss for the year, the latter

compared to 9 in Database 2009.

Key features include:

• 40 societies reported reduced society net

interest margins

• 45 societies reported stable or reduced society

management expenses ratios

• 32 societies have also reported a reduction in the

absolute value of their management expenses

(including 13 of the 16 societies in Peer Group 1) –

cost control has been a key plus point in societies’

recent performance

• Mortgage loss provision charges: a mixed picture with

21 societies reporting absolute value decreases in

charges but 30 reporting increases, despite declining

asset bases. Some societies, in particular the larger

Peer Group 1 societies, are still making significant

mortgage loss provision charges and this is evidenced

by the percentage increases in most of the average

group and society general and specific provisions in

Tables 7 and 8 from Database 2009.

Other profitability factors include:

• for IFRS societies: ongoing fair value volatility on

financial instruments

• FSCS Levy: 17 societies have reported a credit for this

item due to the change in basis for such provisions

(see Table 2a)

• for some societies: provisions against deposits with

Icelandic banks have been reduced due to increased

expectations of recoverability (see over).


Exceptional items Many societies continue to be impacted by exceptional

items, in addition to the FSCS Levies. Such societies

have been identified by an “X” in Table 2a (Group) and

Table 3 (Society) and reference should be made to the

accounts of those societies for a fuller understanding of

the nature and impact of such exceptional items on the

current year’s profitability.

Where practicable, Database 2010 has eliminated the

impact of such exceptional items from the disclosures

for mortgage loss provisions as a percentage of profit, for

recurring profits and for the management expense ratios.

The following societies have disclosed, in their 2009/2010

accounts, a credit of varying amounts for a reduction

in their provisions against deposits in Icelandic banks:

Coventry, Skipton, Chelsea, Leeds, Newcastle, National

Counties, Manchester, Vernon, Chesham, Beverley and

Earl Shilton.

FSCS Levy treatment in Database: a significant majority

of societies have disclosed the FSCS Levy provision after

the provision for mortgage losses. However, a small

number of societies have charged the FSCS Levy further

up the face of the Income and Expenditure Account. In

order to maintain comparability for the various profitability

ratios, including Profit Pre-Provisions and for Recurring

Profits, Database 2010 has restated the Income and

Expenditure Accounts of those societies which have

charged the FSCS Levy further up the Income and

Expenditure Account.

IFRS societies: comments on data inputsIFRS societies are indicated on each table with an “I”.

The majority are in Peer Group 1, with one society,

Manchester, in Peer Group 2.

In order to retain IFRS societies within the Database Peer

Group structure and to maintain comparability with UK

GAAP societies, Database 2010 applies the following

principles to the input process for IFRS societies:

• net interest income is input, unadjusted, as net

interest receivable

• all fair value, gains and losses relating to derivatives,

and disclosed after net interest income, are input as

part of other income

• collective impairment provisions are input as general

mortgage loss provisions

• individual impairment provisions are input as specific

mortgage loss provisions

• retirement benefit obligations: the surpluses or deficits

on defined benefit pension schemes, as disclosed

under IAS19, are input to Table 4 net of deferred tax at

28 percent, to maintain comparability with UK GAAP

societies, which disclose these in the balance sheet net

of deferred tax

• all IFRS reserves are input as one number and shown

separately in Table 2b.



Fair value adjustments: again in order to maintain

comparability with UK GAAP societies, FSRP loans,

FSOL loans, other loans and shares are all input, as far as

society disclosures permit, excluding any fair value/hedge

adjustments, where such adjustments are disclosed

within the relevant notes.

IFRS societies should be aware that, due to differences

in the detail of their disclosures of impairment provisions,

Database may make some assumptions as regards

certain analyses in their Notes. Where we did not

consider that a reasonable assumption was possible we

have input these as “n/a”. In particular a number of IFRS

societies have not disclosed full analyses of their FSRP/

FSOL impairment provisions or of the analyses of such

provisions between collective and individual provisions.

In order to maintain comparability between IFRS societies

and with UK GAAP societies, it would be helpful if all

IFRS societies could clearly disclose the following for

group and society and for current and prior years:

• balance sheet loans analysed between FSRP, FSOL

and other loans

• impairment provisions analysed between FSRP, FSOL

and other loans

• the above impairment provisions also all analysed

between collective and individual

• fair value adjustments, when included in the

relevant Notes, analysed between FSRP, FSOL

and Other Loans.


Gross group mortgage lending (Table 5) The Database 2010 disclosure is gross group mortgage

lending where this is identifiable in a society’s accounts,

usually in the Directors’ Report. Database discloses gross

mortgage lending as a percentage of prior year total group

mortgage assets in the balance sheet (again, for IFRS

societies, excluding any fair value/hedge adjustments).

Where a society does not have subsidiaries then this is a

society only disclosure.

Note that gross group mortgage lending, as used in

Database 2010, excludes any mortgage book acquisitions

where a society discloses such acquisitions and states

that they have been included within the gross lending

disclosure.

Gross mortgage lending is a voluntary disclosure,

but almost all societies now make this disclosure as

it is usually considered to be one of any lender’s key

performance indicators. To enable this survey’s disclosure

to be as accurate and consistent between societies as

possible, it would be helpful if all societies could continue

to clearly disclose:

• gross group mortgage lending in the year; and

• the amount clearly exclusive of any mortgage

book acquisitions.

Responsibility Whilst reasonable steps have been taken to help ensure

the accuracy of the information contained in Database,

KPMG LLP accept no responsibility for any errors

contained therein and there can be no guarantee that

such information is accurate as of the date it is received

or that it will continue to be accurate in the future. No

one should act upon such information without appropriate

professional advice after a thorough examination of the

particular situation.

Paul Boothroyd

Senior Manager, KPMG’s Financial Services practice




Market Outlook

“ The market and regulatory changes that have followed the credit crunch favour financial institutions that are well capitalised, retail funded and proportionately less exposed to specialist lending. This description fits the vast majority of building societies and many societies are performing well.”

The last couple of months have seen the announcements

of exceptional interim results from the Leeds and Coventry

building societies compared to 2009, and over 63 percent of

societies reporting increased profits at their last year end.

Despite this good news, many societies continue to face

short term pressures, especially at interest margin level,

with 77 percent of societies reporting a fall in their last full

year’s accounts. In addition, over two thirds of societies

reported reduced total assets.

In the short term, societies face the following issues:

• Balance sheet structure

• Profitability

• Capital.

Balance sheet structureWhen the credit crunch struck, many banks and

building societies faced two changes that pushed up

the demand for mid term retail funds: firstly, the closure

of the wholesale markets, which had been providing

inexpensive short term funding; and secondly, prudential

pressure to carry higher levels of liquidity. Faced with a

sudden shortage of funding, banks and building societies

competed strongly for new retail funding, pushing up the

cost of retail money. Much of the new expensive money

was raised in the form of fixed term bonds which was

great news for savers.

As the markets have settled post credit crunch, many

societies have been able to reduce the levels of liquidity

they carry and ease back on their need for expensive retail

bond based funding. The impact of the changes in the

funding market has been twofold:

• Societies’ cost of funding has risen sharply

• The high marginal cost of funding has made it hard for

some societies to compete for new mortgage lending

against some of the large internationally diversified banks.


Simon Walker

Partner,

KPMG’s Financial Services practice


Tel: 0113 231 3328

Please note that all percentages quoted use figures calculated from the Building Societies Database 2009 and 2010.




On the asset side of the balance sheet, the relatively long

term nature of mortgage lending, much of it initially lent

on either fixed rate or discounted deals, has made it hard

for many societies to increase their income from lending

as fast as the cost of funding has risen, leading to margin

shrinkage. Over 75 percent of societies’ net interest

margins shrank last year.

For the vast majority of societies this is a short term issue

with mortgages reverting to variable rate after the initial

fixed rate or tracker period expires. Indeed, as a result of

falling house prices and tighter credit criteria, the rate of

remortgaging has fallen sharply, meaning that for most

societies over the next year the proportion of borrowers o

variable rate will rise steadily, so boosting margins.

In the long term the shape of societies’ balance sheets is

likely to change from the height of the boom, with retail

funding becoming more dominant. Last year 70 percent

of societies reduced the proportion of their balance

sheet funded by the money markets. Consequently,

there is likely to be renewed interest from societies in

savers and meeting their needs. This should be good

news for consumers with more societies liable to offer

simple current account facilities, some looking to widen

distribution via agencies, and others looking to the SME

sector as a source of deposits.

ProfitabilityWith margins squeezed by the cost of funding, many

societies face profitability pressures.

One of the most common ways in which societies

have dealt with profitability pressures has been to cut

costs, with 60 percent of societies reporting an absolute

n

reduction in management expenses and over 85 percent

reporting stable or falling management expenses ratios. At

some societies significant further cost reductions can be

achieved, so more falls in costs can be expected next year.

In the mid term the solution to societies’ profitability

pressures should come from widening margins, back

to pre-credit crunch levels or wider. There will be two

sources of margin widening: a modest contribution from a

greater management focus on savings; and a rather larger

contribution from higher margins on lending.

In the mid term mortgage prices should rise to cover the

higher cost of liquidity resulting from the new regulatory

approach and the increased cost of retail versus wholesale

funding. In the short term subdued market demand and

strong competition from retail banks who have limited

other opportunities to lend is likely to hold down prices.

CapitalPost credit crunch regulators’ expectations around capital

have changed. They now require more capital and better

quality capital. Banks have generally met this challenge by

raising fresh equity capital either from the market or the

government.

Societies are generally better capitalised than banks but

the pressure on the quality of capital is a major issue. The

new capital regime means that PIBS (Permanent Interest

Bearing Shares), which historically have been treated as

tier one capital, are no longer regarded as such and will

be phased out as a capital instrument over time. This

means that societies will need new ways of raising core

tier one capital. European regulators have indicated that a

solution for European mutuals will be found in CRD (Capital

Requirements Directive) 4 which is expected to be in force

by 2013.

Whilst the theoretical availability of a new capital

instrument from 2013 provides a mid term solution, some

societies are keen for a way forward more quickly. The

innovative approach taken by Kent Reliance, backing into a

specially formed industrial provident society, raising fresh

capital from a private equity fund, may be an indicator of

things to come.

ConclusionBuilding societies are well placed for the mid term being

well capitalised, retail funded and with low credit risk

lending. In the shorter term they face some challenges but

the evidence from the Building Societies Database 2010

suggests that the overwhelming majority of societies are

facing up to them well.

Simon Walker

Partner, KPMG’s Financial Services practice





Database Tables

Table 1Total Assets, Shares, Members and BranchesPeer Group 1

Asset Society IFRS Year End Group Group Society Society Society Society Number of Average Funding Liquid Society Total Society Society Society

Ranking Total Asset Total Asset Shares Shares Society Balance per Limit Assets Branches Assets per Shareholders Borrowers

Assets Growth Assets Growth Growth Shareholders Shareholder Ratio Branch per Branch per Branch

£'000 % Rank £'000 % Rank £'000 % £ % % Number £'000

1 Nationwide I Apr 2010 191,397,000 -5.41% 8 190,497,000 -5.27% 8 120,943,000 -5.73% 13,800,000 8,764 27.80% 16.80% 900 211,663 15,333 1,556

2 Yorkshire I Dec 2009 22,722,000 -1.35% 5 25,193,700 -2.18% 5 13,794,900 0.82% 1,850,343 7,455 32.50% 31.94% 143 176,180 12,939 1,489

3 Coventry I Dec 2009 18,402,000 5.98% 2 21,037,400 4.34% 2 13,218,200 6.99% 996,000 13,263 24.22% 23.89% 48 438,279 20,750 5,063

4 Skipton I Dec 2009 15,568,800 14.08% 1 15,858,500 12.46% 1 10,461,500 28.84% 708,608 14,758 20.58% 28.95% 90 176,206 7,873 1,584

5 Chelsea I Dec 2009 13,413,400 -8.45% 10 13,406,000 -8.55% 10 10,968,400 14.75% 517,057 21,213 12.20% 27.50% 35 383,029 14,773 4,120

6 Leeds I Dec 2009 9,545,100 -5.84% 9 9,555,700 -5.91% 9 6,750,500 3.59% 558,022 12,075 22.60% 22.02% 68 140,525 8,206 1,152

7 West Bromwich I Mar 2010 8,335,600 -9.35% 12 7,962,100 -9.33% 12 6,544,100 0.04% 527,000 12,415 11.00% 22.47% 46 173,089 11,457 1,304

8 Principality I Dec 2009 6,218,900 -2.81% 6 6,212,900 -2.86% 6 4,921,800 6.72% 416,156 11,811 12.80% 24.49% 51 121,822 8,160 1,082

9 Newcastle I Dec 2009 4,620,100 -9.28% 11 4,514,100 -9.25% 11 3,777,800 14.75% 358,042 10,548 8.79% 28.20% 36 125,392 9,946 1,007

10 Norwich & Peterborough Dec 2009 4,248,300 -14.79% 15 4,250,800 -14.79% 15 3,312,300 5.95% 373,816 8,860 17.30% 23.80% 56 75,907 6,675 1,039

11 Stroud & Swindon Dec 2009 2,736,777 -13.66% 14 2,723,151 -13.69% 14 2,117,789 -3.85% 208,308 10,167 17.55% 27.89% 22 123,780 9,469 1,216

12 Nottingham I Dec 2009 2,599,800 -15.05% 16 2,599,900 -15.06% 16 1,872,800 -14.83% 170,574 10,979 21.70% 22.11% 32 81,247 5,330 1,413

13 Kent Reliance I Sep 2009 2,256,939 -3.55% 7 2,251,476 -3.53% 7 1,875,815 7.34% 175,000 10,719 9.34% 20.77% 1 2,251,476 175,000 10,000

14 Progressive Dec 2009 * 1,664,140 -0.01% 4 1,664,140 -0.01% 4 1,448,299 5.90% 91,807 15,734 8.87% 21.89% 12 138,678 7,651 1,202

15 Cumberland Mar 2010 1,573,665 1.30% 3 1,575,579 1.28% 3 1,320,679 2.88% 160,663 8,220 9.75% 25.80% 33 47,745 4,869 588

16 National Counties Dec 2009 1,245,644 -10.62% 13 1,209,591 -11.03% 13 903,875 -1.92% 54,078 16,714 20.20% 25.63% 1 1,209,591 54,078 13,154

Total Peer Gp Total Peer Gp306,548,165 310,512,037

Average of Peer Group Societies -4.93% -5.21% 4.51% 12,106 17.33% 24.63% 367,163 23,282 2,936

* denotes no Group: therefore Society total assets included as Group

Source : KPMG LLP (UK) 2010



Table 2a Group or Society Profitability RatiosPeer Group 1

Asset Society IFRS Year End Excep. Items Group Profit Group/Society Group Net Group Cost/ Group ManEx/ Group ManEx – Mortgage Loss Provisions Recurring Profit Recurring Profit Change FSCS Levy FSCS Levy

Ranking in Addition to Profit for Change Profit for Year/ Interest Margin/ Income Ratio Mean Assets Other Income/ Charge/(Credit) Charge/(Credit) Inc M Loss Inc M Loss Charge/ Provision

FSCS Levy Year Mean Assets Mean Assets Mean Assets for Year for Year/Profit Provisions Provisions (Credit)

Current Year Pre-provision Current Year Prior Year

X £'000 % % % % % Rank % £'000 % £'000 £'000 % £'000 £'000

1 Nationwide I Apr 2010 X 264,000 80.82% 0.13% 0.87% 62.06% 0.68% 9 0.45% 549,000 66.71% 274,000 490,000 -44.08% -117,000 93,000

2 Yorkshire I Dec 2009 X -3,300 -137.50% -0.01% 0.65% 69.17% 0.54% 7 0.40% 59,000 106.50% -3,600 18,800 -119.15% 2,700 12,100

3 Coventry I Dec 2009 X 43,500 131.38% 0.24% 0.70% 47.66% 0.38% 1 0.28% 19,900 26.53% 55,100 63,300 -12.95% 2,000 n/s

4 Skipton I Dec 2009 X 57,600 142.02% 0.39% 0.36% 87.20% 2.63% 16 -0.02% 43,600 77.44% 12,700 50,200 -74.70% -4,300 11,100

5 Chelsea I Dec 2009 X -20,000 31.51% -0.14% 0.48% 79.56% 0.46% 4 0.36% 57,700 347.59% -41,100 31,900 -228.84% 2,300 8,900

6 Leeds I Dec 2009 X 22,600 58.04% 0.23% 1.12% 35.66% 0.45% 3 0.30% 52,500 65.54% 27,600 36,500 -24.38% -1,300 5,800

7 West Bromwich I Mar 2010 X -17,000 56.74% -0.19% 0.34% 100.23% 0.49% 6 0.34% 20,600 -2060.00% -20,700 -30,400 31.91% -5,400 4,700

8 Principality I Dec 2009 - 10,800 89.47% 0.17% 1.69% 52.08% 0.95% 13 0.81% 39,500 71.56% 15,700 14,500 8.28% 1,400 5,000

9 Newcastle I Dec 2009 X 0 -100.00% 0.00% 0.42% 104.52% 0.86% 12 0.46% 8,000 -444.44% -9,800 4,400 -322.73% -1,300 4,200

10 Norwich & Peterborough Dec 2009 - 900 -78.57% 0.02% 0.70% 94.23% 1.06% 15 0.63% 3,000 100.00% 0 11,600 -100.00% -1,800 2,400

11 Stroud & Swindon Dec 2009 X -4,306 -56.64% -0.15% 0.33% 150.10% 0.64% 8 0.54% 2,595 41.39% -8,865 1,283 -790.96% -1,530 2,416

12 Nottingham I Dec 2009 - -1,400 -380.00% -0.06% 0.67% 100.49% 0.73% 11 0.67% 1,700 1700.00% -1,800 2,900 -162.07% 100 1,600

13 Kent Reliance I Sep 2009 X 1,688 -81.11% 0.07% 0.58% 56.94% 0.39% 2 0.29% 3,250 48.38% 3,468 5,608 -38.16% 784 1,090

14 Progressive Dec 2009 * - 1,051 -43.68% 0.06% 0.51% 79.03% 0.48% 5 0.38% 474 22.41% 1,641 4,024 -59.22% 146 960

15 Cumberland Mar 2010 - 6,344 24.69% 0.41% 1.21% 64.29% 1.00% 14 0.66% 748 8.58% 7,974 9,975 -20.06% -869 1,367

16 National Counties Dec 2009 X 3,040 151.72% 0.23% 0.91% 63.54% 0.69% 10 0.51% 4,913 94.30% 297 938 -68.34% -397 899

Average of Peer Group Societies -6.94% 0.09% 0.72% 77.92% 0.78% 0.44%

* denotes no Group: therefore Society profitability measures included as Group




Table 2b Group or Society Reserves and CapitalPeer Group 1

Asset Society IFRS Year End General IFRS Revaluation Other Total Total Total Prior Year PIBS Subordinated Gross Free

Ranking Reserves Reserves Reserve Reserves/ Reserves Reserves/ Reserves/ Total Total Debt Capital Capital

Minority Total Assets Change on Reserves Reserves/

Interests Prior Year Total Assets£'000 £'000 £'000 £'000 £'000 % % £'000 % £'000 £'000 % %

1 Nationwide I Apr 2010 6,363,000 -715,000 68,000 0 5,716,000 2.99% 33.61% 4,278,000 2.11% 1,524,000 2,166,000 5.40% 4.80%

2 Yorkshire I Dec 2009 975,600 -75,800 0 0 899,800 3.96% -1.04% 909,300 3.95% 159,300 111,700 5.58% 5.13%

3 Coventry I Dec 2009 616,000 -31,800 0 0 584,200 3.17% 6.01% 551,100 3.17% 161,200 70,700 4.68% 4.51%

4 Skipton I Dec 2009 781,500 -18,600 0 3,500 766,400 4.92% 8.33% 707,500 5.18% 83,600 213,000 7.58% 5.79%

5 Chelsea I Dec 2009 455,800 1,800 24,900 0 482,500 3.60% -6.82% 517,800 3.53% 0 202,000 5.50% 4.90%

6 Leeds I Dec 2009 455,500 -8,600 16,900 14,300 478,100 5.01% 3.82% 460,500 4.54% 25,000 40,000 6.34% 6.06%

7 West Bromwich I Mar 2010 258,500 -2,100 3,800 0 260,200 3.12% -1.92% 265,300 2.89% 74,900 179,900* 7.01% 5.38%

8 Principality I Dec 2009 287,900 1,800 0 0 289,700 4.66% 1.65% 285,000 4.45% 65,100 125,600 8.52% 8.71%

9 Newcastle I Dec 2009 178,600 800 0 0 179,400 3.88% -4.93% 188,700 3.71% 29,900 60,800 6.50% 5.58%

10 Norwich & Peterborough Dec 2009 203,400 - 0 0 203,400 4.79% -1.17% 205,800 4.13% 0 15,000 5.50% 5.00%

11 Stroud & Swindon Dec 2009 100,459 - -137 0 100,322 3.67% -7.88% 108,903 3.44% 0 52,000 5.93% 5.36%

12 Nottingham I Dec 2009 137,600 200 0 0 137,800 5.30% -4.50% 144,300 4.71% 25,400 0 6.82% 6.23%

13 Kent Reliance I Sep 2009 53,255 69 0 0 53,324 2.36% 3.38% 51,581 2.20% 36,901 26,703 5.65% 5.52%

14 Progressive Dec 2009 * 71,592 - 3,797 0 75,389 4.53% -0.90% 76,075 4.57% 0 0 4.76% 4.01%

15 Cumberland Mar 2010 102,676 - 0 -93 102,583 6.52% 6.66% 96,174 6.19% 0 0 7.01% 6.62%

16 National Counties Dec 2009 105,606 - 0 0 105,606 8.48% 2.44% 103,089 7.40% 0 0 9.32% 8.44%

* West Bromwich: the £179.9m in the Sub Debt column are Profit Participating Deferred Shares

Average of Peer Group Societies 4.43% 6.38% 5.75%

denotes no Group: therefore Society reserves and capital included as Group*




Table 3 Society Profitability RatiosPeer Group 1


Asset Society IFRS Year End Except. Items Society Profit Net Interest Interest Interest Interest Other Income Cost/ Mortgage Loss Provisions Total ManEx ManEx / Mean Assets ManEx -

Ranking in Addition to Profit Change Margin/Mean Receivable/ Payable/ Spread for and Charges/ Income Charge/(Credit) Charge/(Credit) Other Income/

FSCS Levy for Year Assets Mean FSRP Mean Shares Members Total Income Ratio for Year for Year/Profit Mean Assets

Current Year Pre-provisionX £'000 % % % % % % % £'000 % £'000 % Rank %

1 Nationwide I Apr 2010 X 481,000 1073.17% 0.71% n/a 1.29% n/a 36.24% 59.68% 450,000 51.19% 1,301,000 0.66% 11 0.26%

2 Yorkshire I Dec 2009 X 66,700 300.91% 0.13% 5.69% 4.96% 0.73% 84.57% 55.38% 7,000 7.06% 123,100 0.48% 9 -0.25%

3 Coventry I Dec 2009 X 39,200 134.73% 0.55% 3.72% 3.29% 0.43% 13.63% 50.92% 14,300 22.31% 66,500 0.32% 1 0.24%

4 Skipton I Dec 2009 X 43,700 218.98% 0.21% 3.70% 2.56% 1.14% 69.83% 50.86% 10,400 20.27% 53,100 0.35% 2 -0.13%

5 Chelsea I Dec 2009 X -20,400 -310.31% 0.47% 4.34% 2.84% 1.50% 17.13% 80.18% 56,700 361.15% 63,500 0.45% 6 0.36%

6 Leeds I Dec 2009 X 14,600 36.45% 1.04% 3.73% 2.69% 1.04% 5.89% 37.99% 50,900 75.52% 41,300 0.42% 4 0.35%

7 West Bromwich I Mar 2010 X -10,500 -197.22% 0.30% 3.33% 2.87% 0.46% 21.30% 113.89% 1,000 22.22% 36,900 0.44% 5 0.36%

8 Principality I Dec 2009 - 9,300 -49.18% 0.96% 3.23% 1.82% 1.41% 7.47% 68.14% 7,000 33.49% 44,700 0.71% 13 0.63%

9 Newcastle I Dec 2009 X 1,700 106.14% 0.41% 3.64% 2.38% 1.26% 49.35% 103.13% 8,000 666.67% 39,500 0.83% 14 0.43%

10 Norwich & Peterborough Dec 2009 X 1,200 -75.51% 0.70% 2.38% 1.77% 0.61% 40.55% 82.94% 3,100 33.33% 45,200 0.98% 16 0.50%

11 Stroud & Swindon Dec 2009 X -375 76.16% 0.39% 2.98% 2.56% 0.42% 14.54% 128.05% -14 -0.38% 16,961 0.58% 10 0.52%

12 Nottingham I Dec 2009 - -1,300 -168.42% 0.67% 3.36% 2.40% 0.96% 1.05% 100.00% 1,700 n/a 19,000 0.67% 12 0.67%

13 Kent Reliance I Sep 2009 X 1,162 -85.14% 0.57% 3.18% 3.11% 0.07% 13.19% 59.71% 3,251 53.37% 9,028 0.39% 3 0.31%

14 Progressive Dec 2009 - 1,051 -43.68% 0.51% 3.68% 2.72% 0.96% 16.77% 79.03% 474 22.41% 7,971 0.48% 8 0.38%

15 Cumberland Mar 2010 - 6,327 23.57% 1.21% 3.35% 1.74% 1.61% 16.49% 61.73% 748 8.60% 14,035 0.90% 15 0.66%

16 National Counties Dec 2009 X 6,033 215.75% 0.75% 3.03% 2.79% 0.24% 7.43% 56.94% 202 4.52% 5,907 0.46% 7 0.40%

Average of Peer Group Societies 78.52% 0.60% 3.55% 2.61% 0.86% 25.96% 74.28% 92.12% 0.57% 0.35%



Table 4Society Staff Ratios, Pension Costs and Group IAS19/FRS17 DataPeer Group 1

Asset Society IFRS Year End Society Staff Costs Society Pension Costs Group IAS19/FRS17 Disclosures

Ranking Total Total Staff Staff Costs per Profit for Year Total Assets Total Wages Other Pension Defined Group IAS19/FRS17

Number Costs Staff Member per Staff Member per Staff and Salaries Pension Costs/ Benefit (Deficit)/Surplus Key IAS19/FRS17 Assumptions

of Staff ("TW&S") Costs TW&S Scheme? After Def. Tax % of Gen Salary Discount Inflation

£'000 £'000/Staff £'000/Staff £'000/Staff £'000 £'000 % £'000 Reserves Increase % Rate % Rate %

1 Nationwide I Apr 2010 15,311 560,000 36.58 31.42 12,442 449,000 69,000 15.37% Y - Closed -365,760 5.75% 4.60 5.60 3.60

2 Yorkshire I Dec 2009 2,080 73,300 35.25 32.08 12,115 61,800 5,700 9.22% Y - Closed -3,096 0.32% 5.30 5.70 3.80

3 Coventry I Dec 2009 1,186 35,700 30.10 33.05 17,738 31,300 1,400 4.47% Y - Closed 4,968 -0.81% 4.80 5.80 2.80

4 Skipton I Dec 2009 1,270 27,100 21.34 34.41 12,487 31,900 -7,600 -23.82% Y - Closed -34,128 4.37% n/a 5.75 3.50

5 Chelsea I Dec 2009 920 31,100 33.80 -22.17 14,572 26,600 1,100 4.14% Y - Closed -13,248 2.91% 2.00 5.60 3.70

6 Leeds I Dec 2009 909 24,500 26.95 16.06 10,512 20,200 2,300 11.39% Y - Closed -2,160 0.47% 5.80 5.85 3.80

7 West Bromwich I Mar 2010 747 26,100 34.94 -14.06 10,659 22,700 1,200 5.29% Y - Closed -1,440 0.56% n/a 5.60 n/a

8 Principality I Dec 2009 682 24,800 36.39 13.65 9,117 21,700 1,000 4.61% Y - Closed -7,128 2.48% 3.60 5.65 3.60

9 Newcastle I Dec 2009 974 22,500 23.11 1.75 4,637 21,800 -1,200 -5.50% Y - Closed -1,584 0.89% 4.80 5.70 3.40

10 Norwich & Peterborough Dec 2009 790 24,000 30.38 1.52 5,381 20,300 1,800 8.87% Y - Closed -4,300 2.11% 4.00 5.90 3.50

11 Stroud & Swindon Dec 2009 335 9,741 29.08 -1.12 8,129 8,391 550 6.55% Y - Closed -3,775 3.76% 4.60 5.70 3.50

12 Nottingham I Dec 2009 285 9,200 32.34 -4.57 9,138 7,900 500 6.33% Y - Closed -4,320 3.14% 4.60 5.66 3.60

13 Kent Reliance I Sep 2009 54 3,365 62.90 21.72 42,084 2,699 345 12.78% No n/a n/a n/a n/a n/a

14 Progressive Dec 2009 114 3,690 32.37 9.22 14,598 3,048 394 12.93% Y - Closed -1,208 1.69% 4.50 5.75 3.50

15 Cumberland Mar 2010 317 7,942 25.09 19.99 4,978 6,912 453 6.55% Y - Closed -159 0.15% 4.20 5.60 3.40

16 National Counties Dec 2009 91 3,605 39.62 66.30 13,292 3,074 238 7.74% Y - Closed -649 0.61% 3.00 5.70 3.50

Average of Peer Group Societies 33.14 14.95 12,617 5.43% 1.89% 4.27% 5.71% 3.51%




Table 5 Group Loans and Advances (1): Arrears and ProvisionsPeer Group 1

Asset Society IFRS Year End Lending Group/Society Group Group/Society Total Year FSRP Provisions FSOL Provisions

Ranking Limit Gross Mortgage Lending FSRP Increase FSOL Increase Other Increase Arrears 12 End Mortgage Charge/ Year End Charge/(Credit) Provision Charge/(Credit) Provision

Loans Loans Loans Mths and Over Provisions (Credit) Provision to FSRP Loans to FSRP to FSOL Loans to FSOL

% to Total Loans Loans% £'000 P/Yr Loans £'000 % £'000 % £'000 % Number £'000 £'000 £'000 % % % %

1 Nationwide I Apr 2010 15.20% 13,800,000 8.92% n/a n/a n/a n/a n/a n/a 2,857 750,000 n/a n/a n/a n/a n/a n/a

2 Yorkshire I Dec 2009 6.30% 936,000 5.90% 14,700,700 -7.30% 4,000 -13.04% 0 n/a 622 50,700 59,000 50,700 0.40% 0.34% 0.00% 0.00%

3 Coventry I Dec 2009 1.11% 2,700,000 20.50% 13,991,200 7.02% 100 0.00% 83,400 -16.18% 174 23,400 16,400 20,600 0.12% 0.15% 0.00% 0.00%

4 Skipton I Dec 2009 10.64% 408,100 4.35% 10,036,900 14.38% 516,800 -1.81% 74,300 -6.31% 703 85,100 36,400 75,100 0.36% 0.74% 1.07% 1.36%

5 Chelsea I Dec 2009 2.40% 576,900 5.52% 9,522,500 -7.49% 147,000 -1.80% 0 n/a 290 54,300 53,700 50,300 0.56% 0.53% 2.65% 2.65%

6 Leeds I Dec 2009 14.80% 922,000 12.58% 6,499,000 -0.40% 544,900 -9.90% 188,100 -6.32% 443 59,100 12,200 20,300 0.19% 0.31% 6.95% 5.97%

7 West Bromwich I Mar 2010 19.40% 11,900 0.17% 5,028,900 -7.49% 1,407,900 -5.33% 200 0.00% 211 84,000 17,300 38,600 0.34% 0.76% 0.23% 3.12%

8 Principality I Dec 2009 15.00% 683,500 14.34% 4,055,900 -2.92% 594,600 1.04% 0 n/a 438 49,300 39,500 49,300 0.96% 1.20% 0.00% 0.00%

9 Newcastle I Dec 2009 18.03% 119,000 3.10% 2,858,000 -10.39% 529,300 -6.10% 72,500 -15.30% 61 22,100 2,200 5,000 0.08% 0.17% 1.08% 2.93%

10 Norwich & Peterborough Dec 2009 11.60% 124,000 3.49% 2,900,200 -9.04% 322,500 -3.39% 34,500 8.83% 49 13,300 100 7,900 0.00% 0.27% 0.25% 0.68%

11 Stroud & Swindon Dec 2009 2.27% 49,000 2.05% 1,959,264 -17.40% 17,697 -16.54% 251 -35.97% 195 5,837 2,729 5,787 0.14% 0.29% -0.02% 0.28%

12 Nottingham I Dec 2009 5.30% 288,000 12.46% 1,946,000 -13.33% 70,500 6.02% 0 n/a 19 3,000 1,600 2,000 0.08% 0.10% 0.14% 1.40%

13 Kent Reliance I Sep 2009 11.71% 95,000 5.05% 1,611,580 -9.71% 146,716 53.45% 0 n/a 43 7,086 2,617 6,085 0.16% 0.38% 0.43% 0.68%

14 Progressive Dec 2009 0.60% 141,000 10.97% n/a n/a n/a n/a n/a n/a 25 n/a n/a n/a n/a n/a n/a n/a

15 Cumberland Mar 2010 12.96% 152,860 12.90% 1,034,460 -0.23% 145,619 -0.47% 1,464 11.16% 7 4,233 139 1,690 0.01% 0.16% 0.42% 1.65%

16 National Counties Dec 2009 9.24% 74,630 7.53% 862,412 -6.12% 41,132 15.85% 31,221 -14.51% 13 7,526 312 1,855 0.04% 0.21% 0.36% 1.57%

Average of Peer Group Societies 9.79% 8.12% -5.03% 1.28% -8.29% 0.25% 0.40% 0.97% 1.59%




Table 6 Society Loans and Advances (1): ProvisionsPeer Group 1

Asset Society IFRS Year End Lending Number of Society Total Year FSRP Provisions FSOL Provisions

Ranking Limit Society FSRP Increase FSOL Increase Other Increase End Mortgage Charge/ Year End Charge/(Credit) Provision Charge/(Credit) Provision

Borrowers Loans Loans Loans Provisions (Credit) Provision to FSRP Loans to FSRP to FSOL Loans to FSOL

Loans Loans% £'000 % £'000 % £'000 % £'000 £'000 £'000 % % % %

1 Nationwide I Apr 2010 15.20% 1,400,000 n/a n/a n/a n/a n/a n/a 578,000 n/a n/a n/a n/a n/a n/a

2 Yorkshire I Dec 2009 6.30% 212,856 8,565,800 -8.25% 4,000 -13.04% 0 n/a 2,200 7000 2,200 0.08% 0.03% 0.00% 0.00%

3 Coventry I Dec 2009 1.11% 243,000 11,337,300 1.88% 100 0.00% 59,800 -19.41% 17,800 11400 15,300 0.10% 0.13% 0.00% 0.00%

4 Skipton I Dec 2009 10.64% 142,564 7,560,500 7.52% 516,800 -1.81% 23,700 -12.87% 20,600 3800 11,100 0.05% 0.15% 1.07% 1.36%

5 Chelsea I Dec 2009 2.40% 144,204 9,338,000 -8.13% 147,000 -1.80% 0 n/a 53,300 52700 49,300 0.56% 0.53% 2.65% 2.65%

6 Leeds I Dec 2009 14.80% 78,355 6,498,600 2.42% 545,200 -9.85% 188,100 -6.32% 58,800 10900 20,300 0.17% 0.31% 6.90% 5.92%

7 West Bromwich I Mar 2010 19.40% 60,000 2,323,800 -9.51% 27,900 -8.52% 0 n/a 12,400 1000 12,400 0.04% 0.53% 0.00% 0.00%

8 Principality I Dec 2009 15.00% 55,207 3,429,400 -2.40% 594,600 1.04% 0 n/a 12,500 7000 12,500 0.20% 0.36% 0.00% 0.00%

9 Newcastle I Dec 2009 18.03% 36,249 2,820,000 -10.39% 430,900 -6.20% 72,500 -15.30% 22,100 2200 5,000 0.08% 0.18% 1.32% 3.58%

10 Norwich & Peterborough Dec 2009 11.60% 58,163 2,645,600 -10.31% 322,500 -3.39% 34,500 8.83% 13,200 200 7,800 0.01% 0.29% 0.25% 0.68%

11 Stroud & Swindon Dec 2009 2.27% 26,750 1,511,922 -21.08% 2,225 -9.92% 0 n/a 383 111 345 0.01% 0.02% -0.09% 1.68%

12 Nottingham I Dec 2009 5.30% 45,209 1,946,000 -13.33% 70,500 6.02% 0 n/a 3,000 1600 2,000 0.08% 0.10% 0.14% 1.40%

13 Kent Reliance I Sep 2009 11.71% 10,000 897,221 -1.85% 104,550 9.35% 0 n/a 7,075 2627 6,083 0.29% 0.67% 0.59% 0.94%

14 Progressive Dec 2009 0.60% 14,429 1,297,209 1.55% 6,923 -5.19% 0 n/a 1,522 474 1,489 0.04% 0.11% 0.00% 0.47%

15 Cumberland Mar 2010 12.96% 19,397 1,034,460 -0.23% 145,619 -0.47% 1,464 11.16% 4,233 139 1,690 0.01% 0.16% 0.42% 1.65%

16 National Counties Dec 2009 9.24% 13,154 753,060 -7.25% 27,098 13.97% 1 0.00% 1,254 204 1,224 0.03% 0.16% -0.01% 0.11%

Average of Peer Group Societies 9.79% -5.29% -1.99% -4.84% 0.12% 0.25% 0.88% 1.36%




Table 7 Group Loans and Advances (2): ProvisionsPeer Group 1

Loans Fully Secured on Residential Property FSRP Loans Fully Secured on Land FSOL

Asset Society IFRS Year End General Specific General to General Specific General Specific General to General Specific

Ranking Provision Provision Specific Provision/Total Provision/Total Provision Provision Specific Provision/Total Provision/Total

Provision FSRP FSRP Provision FSOL FSOL£'000 £'000 % % % £'000 £'000 % % %

1 Nationwide I Apr 2010 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

2 Yorkshire I Dec 2009 3,700 47,000 8% 0.03% 0.32% 0 0 n/a 0.00% 0.00%

3 Coventry I Dec 2009 5,300 15,300 35% 0.04% 0.11% 0 0 n/a 0.00% 0.00%

4 Skipton I Dec 2009 24,300 50,800 48% 0.24% 0.50% 5,300 1,800 294% 1.01% 0.34%

5 Chelsea I Dec 2009 5,400 44,900 12% 0.06% 0.47% 0 4,000 n/a 0.00% 2.65%

6 Leeds I Dec 2009 9,000 11,300 80% 0.14% 0.17% 5,000 29,600 17% 0.86% 5.11%

7 West Bromwich I Mar 2010 5,200 33,400 16% 0.10% 0.66% 13,200 32,200 41% 0.91% 2.22%

8 Principality I Dec 2009 n/a n/a n/a n/a n/a 0 0 n/a 0.00% 0.00%

9 Newcastle I Dec 2009 1,200 3,800 32% 0.04% 0.13% 2,400 13,600 18% 0.44% 2.49%

10 Norwich & Peterborough Dec 2009 2,300 5,600 41% 0.08% 0.19% 900 1,300 69% 0.28% 0.40%

11 Stroud & Swindon Dec 2009 1,029 4,758 22% 0.05% 0.24% 50 0 n/a 0.28% 0.00%

12 Nottingham I Dec 2009 300 1,700 18% 0.02% 0.09% 300 700 43% 0.42% 0.98%

13 Kent Reliance I Sep 2009 212 5,873 4% 0.01% 0.36% 487 514 95% 0.33% 0.35%

14 Progressive Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

15 Cumberland Mar 2010 1,690 0 n/a 0.16% 0.00% 2,248 199 1130% 1.52% 0.13%

16 National Counties Dec 2009 334 1,521 22% 0.04% 0.18% 30 627 5% 0.07% 1.50%

Total Total Peer Gp Ratio Total Total Peer Gp Ratio59,965 225,952 27% 29,915 84,540 35%

Average of Peer Group Societies 0.08% 0.26% 0.44% 1.16%









1 Nationwide I Apr 2010 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

2 Yorkshire I Dec 2009 100 2,100 5% 0.00% 0.02% 0 0 n/a 0.00% 0.00%

3 Coventry I Dec 2009 3,600 11,700 31% 0.03% 0.10% 0 0 n/a 0.00% 0.00%

4 Skipton I Dec 2009 7,300 3,800 192% 0.10% 0.05% 5,300 1,800 294% 1.01% 0.34%

5 Chelsea I Dec 2009 4,400 44,900 10% 0.05% 0.48% 0 4,000 n/a 0.00% 2.65%

6 Leeds I Dec 2009 9,000 11,300 80% 0.14% 0.17% 5,000 29,300 17% 0.86% 5.06%

7 West Bromwich I Mar 2010 600 11,800 5% 0.03% 0.51% 0 0 n/a 0.00% 0.00%

8 Principality I Dec 2009 n/a n/a n/a n/a n/a 0 0 n/a 0.00% 0.00%

9 Newcastle I Dec 2009 1,200 3,800 32% 0.04% 0.13% 2,400 13,600 18% 0.54% 3.04%

10 Norwich & Peterborough Dec 2009 2,200 5,600 39% 0.08% 0.21% 900 1,300 69% 0.28% 0.40%

11 Stroud & Swindon Dec 2009 39 306 13% 0.00% 0.02% 38 0 n/a 1.68% 0.00%

12 Nottingham I Dec 2009 300 1,700 18% 0.02% 0.09% 300 700 43% 0.42% 0.98%

13 Kent Reliance I Sep 2009 210 5,873 4% 0.02% 0.65% 478 514 93% 0.45% 0.49%

14 Progressive Dec 2009 279 1,210 23% 0.02% 0.09% 33 0 n/a 0.47% 0.00%

15 Cumberland Mar 2010 1,690 0 n/a 0.16% 0.00% 2,248 199 1130% 1.52% 0.13%

16 National Counties Dec 2009 302 922 33% 0.04% 0.12% 30 0 n/a 0.11% 0.00%






Table 1 Total Assets, Shares, Members and BranchesPeer Group 2




£'000 % Rank £'000 % Rank £'000 % £ % % Number £'000

17 Manchester I Dec 2009 937,320 -1.11% 7 906,809 -1.22% 7 736,240 10.17% 33,102 22,242 14.31% 27.50% 1 906,809 33,102 5,852

18 Cambridge Dec 2009 904,038 -1.68% 8 908,162 -1.67% 8 819,606 -0.95% 112,396 7,227 3.89% 27.32% 19 47,798 5,916 358

19 Furness Dec 2009 842,610 -4.30% 15 842,091 -4.32% 15 685,976 -3.19% 101,165 6,779 11.84% 24.96% 11 76,554 9,197 899

20 Saffron Dec 2009 835,855 -1.98% 9 835,070 -2.01% 9 673,992 -1.47% 101,375 6,649 13.80% 27.20% 12 69,589 8,448 457

21 Leek United Dec 2009 735,321 -2.48% 11 734,973 -2.48% 11 616,316 -2.96% 86,338 7,138 9.69% 23.90% 12 61,248 7,195 671

22 Monmouthshire Apr 2010 692,294 6.51% 4 692,126 6.60% 4 588,151 4.77% 53,758 10,941 10.20% 26.67% 11 62,921 4,887 472

23 Hinckley & Rugby Nov 2009 * 644,203 -7.91% 20 644,203 -7.91% 20 512,647 -6.84% 60,000 8,542 14.60% 27.10% 11 58,564 5,455 773

24 Newbury Oct 2009 630,521 -3.94% 14 629,331 -3.96% 14 540,924 8.10% 48,440 11,132 8.90% 21.40% 9 69,926 5,382 602

25 Darlington Dec 2009 582,935 -20.66% 23 583,907 -20.08% 23 504,215 -7.27% 79,775 6,320 7.00% 22.80% 13 44,916 6,137 647

26 Ipswich Nov 2009 * 462,437 9.27% 3 462,437 9.27% 3 356,353 8.26% 62,105 5,737 17.80% 29.14% 9 51,382 6,901 666

27 Market Harborough Dec 2009 417,328 -2.05% 10 416,225 -2.07% 10 328,448 -1.83% 51,657 6,358 15.41% 24.01% 6 69,371 8,610 802

28 Melton Mowbray Dec 2009 409,746 -5.92% 16 410,446 -6.04% 16 348,323 -13.21% 55,007 6,332 7.84% 26.41% 4 102,612 13,752 1,356

29 Marsden Dec 2009 * 356,187 -2.87% 12 356,187 -2.87% 12 295,203 -5.48% 51,957 5,681 8.76% 25.73% 12 29,682 4,330 352

30 Tipton & Coseley Dec 2009 350,423 -7.14% 18 350,420 -7.14% 18 284,917 -3.24% 36,464 7,813 12.42% 25.06% 4 87,605 9,116 1,578

31 Hanley Economic Aug 2009 349,495 -3.74% 13 347,907 -3.78% 13 288,161 -1.68% 32,648 8,826 10.13% 29.14% 5 69,581 6,530 812

32 Scottish Jan 2010 327,121 10.61% 2 325,574 10.66% 2 259,453 13.13% 25,323 10,213 14.00% 27.90% 6 54,262 4,221 556

33 Dudley Mar 2010 * 313,025 1.99% 5 313,025 1.99% 5 282,846 1.98% 30,603 9,242 3.98% 28.69% 7 44,718 4,372 458

34 Loughborough Oct 2009 * 277,941 0.37% 6 277,941 0.37% 6 228,810 7.68% 27,433 8,341 11.37% 28.30% 3 92,647 9,144 894

35 Mansfield Dec 2009 273,650 -7.53% 19 273,712 -7.53% 19 231,300 0.11% 22,555 10,250 8.97% 25.16% 4 68,428 5,639 1,039

36 Teachers Dec 2009 257,363 -8.35% 21 257,362 -8.35% 21 214,369 -6.36% 17,408 12,314 9.61% 24.29% 1 257,362 17,408 2,650

37 Bath Investment Dec 2009 251,839 16.63% 1 251,711 16.63% 1 173,308 8.25% 21,933 7,902 26.90% 31.70% 5 50,342 4,387 200

38 Vernon Dec 2009 245,810 -6.46% 17 245,819 -6.46% 17 200,532 -0.40% 33,904 5,880 12.81% 26.70% 7 35,117 4,843 387

39 Chesham Nov 2009 * 230,825 -10.29% 22 230,825 -10.29% 22 190,298 -0.33% 15,596 12,202 11.70% 25.63% 3 76,942 5,199 632


Average of Peer Group Societies -2.31% -2.29% 0.31% 8,872 11.56% 26.38% 108,190 8,268 1,005





Table 2aGroup or Society Profitability RatiosPeer Group 2




Current Year Pre-provision Current Year Prior Year

X £'000 % % % % % Rank % £'000 % £'000 £'000 % £'000 £'000

17 Manchester I Dec 2009 X -116 -106.72% -0.01% 0.97% 66.26% 0.72% 1 0.60% 963 27.69% 2,515 5,816 -56.76% 380 651

18 Cambridge Dec 2009 X 429 -72.16% 0.05% 1.09% 86.96% 1.01% 16 0.94% 996 71.86% 390 4,309 -90.95% -517 909

19 Furness Dec 2009 - 1,157 -2.94% 0.13% 0.93% 78.68% 0.84% 9 0.71% 195 9.99% 1,756 2,456 -28.50% 151 654

20 Saffron Dec 2009 - 1,682 88.99% 0.20% 1.02% 73.51% 0.84% 10 0.71% 558 21.80% 2,002 2,230 -10.22% 0 1,115

21 Leek United Dec 2009 - 2,752 81.77% 0.37% 1.18% 58.14% 0.80% 5 0.61% 91 2.13% 4,179 3,179 31.46% 320 750

22 Monmouthshire Apr 2010 - 1,892 -5.64% 0.28% 1.04% 65.49% 0.78% 4 0.63% 137 4.98% 2,616 3,224 -18.86% 105 391

23 Hinckley & Rugby Nov 2009 * - 280 -77.87% 0.04% 0.74% 92.38% 0.77% 3 0.67% 0 0.00% 428 2,302 -81.41% 158 296

24 Newbury Oct 2009 - 1,355 -16.56% 0.21% 1.12% 65.14% 0.77% 2 0.71% 79 2.99% 2,563 2,608 -1.73% 660 743

25 Darlington Dec 2009 X 555 121.96% 0.10% 1.36% 70.49% 0.99% 14 0.94% 500 18.32% 2,230 1,485 50.17% 59 542

26 Ipswich Nov 2009 * X 271 27.23% 0.06% 1.21% 90.36% 1.16% 19 1.09% 228 41.76% 318 363 -12.40% 116 133

27 Market Harborough Dec 2009 X 1,006 100.80% 0.24% 1.31% 68.77% 0.99% 15 0.86% 238 12.54% 1,660 1,061 56.46% 70 297

28 Melton Mowbray Dec 2009 X 16 -89.33% 0.00% 1.16% 88.66% 1.27% 20 0.99% 863 125.25% -174 -547 68.19% 215 370

29 Marsden Dec 2009 * X 627 -1.72% 0.17% 1.55% 82.94% 1.39% 22 1.26% 376 49.74% 380 1,341 -71.66% -193 333

30 Tipton & Coseley Dec 2009 - 949 24.87% 0.26% 1.22% 62.39% 0.83% 8 0.71% 688 37.58% 1,143 1,621 -29.49% -178 321

31 Hanley Economic Aug 2009 X 963 -14.78% 0.27% 1.30% 74.22% 1.06% 18 0.93% 1,838 139.88% -524 1,604 -132.67% 635 635

32 Scottish Jan 2010 - 601 5.44% 0.19% 1.64% 79.64% 1.29% 21 1.31% 70 6.84% 954 1,058 -9.83% 95 258

33 Dudley Mar 2010 - 917 69.50% 0.30% 1.44% 64.48% 0.96% 13 0.91% 558 33.86% 1,090 1,264 -13.77% -189 306

34 Loughborough Oct 2009 * - 384 -39.24% 0.14% 1.14% 69.35% 0.86% 11 0.76% 64 6.04% 996 1,018 -2.16% 480 520

35 Mansfield Dec 2009 * - 261 76.35% 0.09% 0.82% 91.78% 0.89% 12 0.74% 0 0.00% 227 680 -66.62% -127 248

36 Teachers Dec 2009 - 306 -11.82% 0.11% 0.77% 90.22% 0.80% 6 0.68% -214 -91.85% -14 791 -101.77% 22 210

37 Bath Investment Dec 2009 - 687 129.00% 0.29% 1.72% 72.39% 1.41% 23 1.18% 130 10.31% 1,131 683 65.59% 169 n/s

38 Vernon Dec 2009 X 497 458.43% 0.20% 1.17% 82.67% 1.06% 17 0.94% 94 16.64% 471 1,006 -53.18% 109 219

39 Chesham Nov 2009 * X 820 143.34% 0.34% 0.38% 202.38% 0.80% 7 0.79% 0 0.00% -991 486 -303.91% 105 116

Average of Peer Group Societies 38.65% 0.18% 1.14% 81.62% 0.97% 0.86%










17 Manchester I Dec 2009 31,852 0 0 0 31,852 3.40% -0.36% 31,968 3.37% 14,788 15,700 7.10% 6.10%

18 Cambridge Dec 2009 50,787 - 0 0 50,787 5.62% -5.69% 53,853 5.86% 0 0 6.01% 5.25%

19 Furness Dec 2009 53,411 - 0 0 53,411 6.34% 0.28% 53,261 6.05% 0 4,956 7.50% 7.41%

20 Saffron Dec 2009 38,433 - 931 0 39,364 4.71% 0.83% 39,039 4.58% 0 10,000 6.30% 5.60%

21 Leek United Dec 2009 46,255 - 1,113 0 47,368 6.44% 3.53% 45,752 6.07% 0 0 6.94% 6.68%

22 Monmouthshire Apr 2010 35,215 - 0 0 35,215 5.09% 4.62% 33,659 5.18% 0 0 5.38% 4.50%

23 Hinckley & Rugby Nov 2009 * 40,045 - 0 0 40,045 6.22% -7.80% 43,431 6.21% 0 0 6.70% 6.50%

24 Newbury Oct 2009 34,128 - 2,179 0 36,307 5.76% 6.16% 34,201 5.21% 0 0 6.14% 5.26%

25 Darlington Dec 2009 38,484 - 0 0 38,484 6.60% 0.42% 38,324 5.22% 0 0 7.10% 6.50%

26 Ipswich Nov 2009 * 19,027 - 0 0 19,027 4.11% -0.32% 19,089 4.51% 0 7,963 6.23% 5.49%

27 Market Harborough Dec 2009 26,906 - 0 0 26,906 6.45% 2.29% 26,304 6.17% 0 0 6.93% 6.58%

28 Melton Mowbray Dec 2009 29,568 - 870 0 30,438 7.43% -1.75% 30,980 7.11% 0 0 8.05% 6.43%

29 Marsden Dec 2009 * 30,233 - 377 0 30,610 8.59% 1.74% 30,087 8.20% 0 0 9.46% 8.71%

30 Tipton & Coseley Dec 2009 23,329 - -216 0 23,113 6.60% 0.47% 23,004 6.10% 0 0 7.11% 6.82%

31 Hanley Economic Aug 2009 27,163 - 0 0 27,163 7.77% 3.68% 26,200 7.22% 0 0 8.47% 7.45%

32 Scottish Jan 2010 24,854 - 0 0 24,854 7.60% 2.48% 24,253 8.20% 0 0 8.30% 7.70%

33 Dudley Mar 2010 * 17,030 - 0 0 17,030 5.44% 5.69% 16,113 5.25% 0 0 5.78% 5.81%

34 Loughborough Oct 2009 * 17,376 - 717 0 18,093 6.51% 2.17% 17,709 6.39% 0 0 7.01% 6.88%

35 Mansfield Dec 2009 17,870 - 555 0 18,425 6.73% -0.43% 18,505 6.25% 0 0 7.25% 6.82%

36 Teachers Dec 2009 18,006 - 102 0 18,108 7.04% -1.18% 18,324 6.53% 0 0 7.64% 7.67%

37 Bath Investment Dec 2009 14,108 - 399 1 14,508 5.76% 4.14% 13,931 6.45% 0 0 6.10% 4.80%

38 Vernon Dec 2009 15,563 - 0 0 15,563 6.33% 3.30% 15,066 5.73% 0 0 6.81% 6.13%

39 Chesham Nov 2009 * 14,540 - 0 0 14,540 6.30% 5.98% 13,720 5.33% 0 0 6.75% 6.09%


* denotes no Group: therefore Society reserves and capital included as Group








Current Year Pre-provisionX £'000 % % % % % % % £'000 % £'000 % Rank %

17 Manchester I Dec 2009 X 166 9.21% 0.77% 4.31% 3.13% 1.18% 26.66% 57.72% 1,386 35.38% 5,347 0.59% 1 0.34%

18 Cambridge Dec 2009 X 381 -74.53% 1.08% 2.75% 1.74% 1.01% 9.69% 87.62% 996 75.68% 9,312 1.02% 18 0.94%

19 Furness Dec 2009 - 957 -6.36% 0.92% 3.40% 2.04% 1.36% 8.13% 79.48% 270 15.31% 6,827 0.79% 7 0.71%

20 Saffron Dec 2009 - 1,352 58.13% 0.93% 2.34% 1.55% 0.79% 11.86% 77.22% 489 24.06% 6,887 0.82% 9 0.69%

21 Leek United Dec 2009 - 2,755 88.31% 1.18% 3.61% 2.26% 1.35% 12.45% 57.76% 91 2.19% 5,689 0.76% 4 0.62%

22 Monmouthshire Apr 2010 - 1,885 -9.38% 1.04% 3.58% 2.45% 1.13% 2.41% 61.74% 137 5.01% 4,412 0.66% 2 0.63%

23 Hinckley & Rugby Nov 2009 - 280 -77.87% 0.74% 2.09% 1.08% 1.01% 11.71% 92.38% 0 0.00% 5,191 0.77% 6 0.67%

24 Newbury Oct 2009 - 1,259 -17.98% 1.11% 3.69% 2.40% 1.29% 6.37% 66.01% 105 4.14% 4,929 0.77% 5 0.71%

25 Darlington Dec 2009 - 2,079 254.69% 1.36% 3.47% 1.89% 1.58% 8.86% 65.69% 500 14.87% 6,440 0.98% 15 0.85%

26 Ipswich Nov 2009 X 271 27.23% 1.21% 3.90% 2.09% 1.81% 8.15% 90.36% 228 41.76% 5,119 1.16% 20 1.09%

27 Market Harborough Dec 2009 X 949 113.74% 1.29% 3.59% 1.90% 1.69% 11.74% 69.41% 238 13.03% 4,143 0.98% 16 0.85%

28 Melton Mowbray Dec 2009 X -262 -170.81% 0.93% 1.99% 1.27% 0.72% 20.98% 80.41% 151 15.47% 4,005 0.95% 13 0.70%

29 Marsden Dec 2009 X 627 -3.83% 1.55% 2.94% 1.15% 1.79% 7.98% 82.94% 376 49.74% 5,042 1.39% 23 1.26%

30 Tipton & Coseley Dec 2009 - 909 26.07% 1.22% 3.31% 1.75% 1.56% 7.38% 62.76% 688 38.65% 3,000 0.82% 10 0.73%

31 Hanley Economic Aug 2009 X 766 -3.28% 1.23% 3.98% 3.04% 0.94% 7.02% 77.35% 1,838 174.88% 3,589 1.01% 17 0.94%

32 Scottish Jan 2010 - 595 11.42% 1.62% 3.80% 1.83% 1.97% 0.73% 79.42% 70 6.88% 3,925 1.27% 22 1.29%

33 Dudley Mar 2010 - 917 69.50% 1.44% 3.57% 1.75% 1.82% 5.06% 64.48% 558 33.86% 2,991 0.96% 14 0.91%

34 Loughborough Oct 2009 - 384 -39.24% 1.14% 4.05% 2.90% 1.15% 9.50% 69.35% 64 6.04% 2,398 0.86% 11 0.76%

35 Mansfield Dec 2009 - 278 44.79% 0.82% 3.58% 2.52% 1.06% 14.65% 90.96% 0 0.00% 2,495 0.88% 12 0.74%

36 Teachers Dec 2009 - 280 -16.91% 0.77% 3.25% 2.41% 0.84% 8.04% 91.02% -214 -107.00% 2,027 0.75% 3 0.69%

37 Bath Investment Dec 2009 - 673 115.71% 1.72% 4.25% 1.96% 2.29% 2.75% 71.27% 130 11.05% 2,917 1.25% 21 1.22%

38 Vernon Dec 2009 X 497 458.43% 1.17% 3.34% 1.88% 1.46% 11.12% 82.67% 94 16.64% 2,695 1.06% 19 0.94%

39 Chesham Nov 2009 X 820 143.34% 0.38% 2.34% 1.68% 0.66% 4.24% 202.38% 0 0.00% 1,959 0.80% 8 0.79%





Table 4 Society Staff Ratios, Pension Costs and Group IAS19/FRS17 DataPeer Group 2






17 Manchester I Dec 2009 86 3,153 36.66 1.93 10,544 2,647 234 8.84% No n/a n/a n/a n/a n/a

18 Cambridge Dec 2009 161 4,880 30.31 2.37 5,641 4,149 299 7.21% Y - Closed -4,262 8.39% 4.30 5.60 3.80

19 Furness Dec 2009 116 3,447 29.84 8.29 7,291 3,019 186 6.16% Y - Closed -1,440 2.70% 2.30 5.70 3.70

20 Saffron Dec 2009 135 3,926 29.08 10.01 6,186 3,390 228 6.73% Y - Closed 178 -0.46% 3.50 5.70 3.50

21 Leek United Dec 2009 104 2,885 27.74 26.49 7,067 2,477 195 7.87% Y - Closed -3,164 6.84% 5.00 5.65 3.75

22 Monmouthshire Apr 2010 84 2,631 31.51 22.57 8,289 2,206 216 9.79% Y - Open 45 -0.13% 3.30 5.50 3.30

23 Hinckley & Rugby Nov 2009 88 3,145 35.94 3.20 7,362 2,644 272 10.29% Y - Closed -2,284 5.70% 4.65 5.50 n/a

24 Newbury Oct 2009 87 2,729 31.37 14.47 7,234 2,152 342 15.89% No n/a n/a n/a n/a n/a

25 Darlington Dec 2009 96 3,331 34.70 21.66 6,082 2,688 410 15.25% Y - Open -469 1.22% 3.25 5.65 3.25

26 Ipswich Nov 2009 77 2,361 30.86 3.54 6,045 1,986 176 8.86% Y - Closed -212 1.11% n/a 5.60 3.10

27 Market Harborough Dec 2009 66 2,397 36.60 14.49 6,355 1,881 319 16.96% Y - Closed -661 2.46% 4.10 5.80 3.60

28 Melton Mowbray Dec 2009 66 2,154 32.64 -3.97 6,219 1,726 243 14.08% Y - Closed 2,854 -9.65% n/a 5.60 n/a

29 Marsden Dec 2009 82 2,851 34.77 7.65 4,344 2,303 310 13.46% No n/a n/a n/a n/a n/a

30 Tipton & Coseley Dec 2009 55 1,668 30.33 16.53 6,371 1,368 163 11.92% Y - Open -292 1.25% 4.00 5.70 3.50

31 Hanley Economic Aug 2009 52 1,860 35.77 14.73 6,691 1,687 105 6.22% No n/a n/a n/a n/a n/a

32 Scottish Jan 2010 50 1,858 37.54 12.02 6,577 1,460 253 17.33% No n/a n/a n/a n/a n/a

33 Dudley Mar 2010 55 1,494 27.41 16.83 5,744 1,221 141 11.55% No n/a n/a n/a n/a n/a

34 Loughborough Oct 2009 42 1,267 30.17 9.14 6,618 1,094 78 7.13% No n/a n/a n/a n/a n/a

35 Mansfield Dec 2009 48 1,393 29.02 5.79 5,702 1,162 89 7.66% Y - Closed -231 1.29% n/a 5.70 3.80

36 Teachers Dec 2009 30 1,105 37.46 9.49 8,724 917 73 7.96% Y - Closed -779 4.33% 4.30 5.40 3.80

37 Bath Investment Dec 2009 34 1,493 43.91 19.79 7,403 1,283 78 6.08% No n/a n/a n/a n/a n/a

38 Vernon Dec 2009 56 1,668 29.79 8.88 4,390 1,438 96 6.68% No n/a n/a n/a n/a n/a

39 Chesham Nov 2009 25 923 37.67 33.47 9,421 785 60 7.64% No n/a n/a n/a n/a n/a

Average of Peer Group Societies 33.09 12.15 6,796 10.07% 1.93% 3.87% 5.62% 3.55%








% to Total Loans Loans% £'000 P/Yr loans £'000 % £'000 % £'000 % Number £'000 £'000 £'000 % % % %

17 Manchester I Dec 2009 10.35% 41,300 5.83% 622,191 -1.86% 42,669 -9.83% 23,708 -12.96% 20 4,647 162 3,243 0.03% 0.52% -0.02% 0.25%

18 Cambridge Dec 2009 4.92% 80,100 11.81% 635,292 -1.17% 29,765 -16.18% 0 n/a 9 2,517 -293 490 -0.05% 0.08% 4.05% 6.38%

19 Furness Dec 2009 5.12% 80,600 11.86% 613,961 -5.20% 29,527 -7.63% 0 n/a 11 1,455 -221 991 -0.04% 0.16% 1.39% 1.55%

20 Saffron Dec 2009 1.00% 46,000 7.22% 609,789 -3.52% 4,670 -11.62% 0 n/a 4 2,648 557 2,647 0.09% 0.43% 0.02% 0.02%

21 Leek United Dec 2009 0.37% 60,000 10.28% 567,372 -2.51% 1,234 -14.42% 0 n/a 0 1,000 100 1,000 0.02% 0.18% 0.00% 0.00%

22 Monmouthshire Apr 2010 9.71% 90,000 18.54% 462,663 6.22% 46,643 -6.56% 0 n/a 5 1,656 53 1,200 0.01% 0.26% 0.18% 0.97%

23 Hinckley & Rugby Nov 2009 0.50% 32,500 6.12% n/a n/a n/a n/a n/a n/a 1 n/a n/a n/a n/a n/a n/a n/a

24 Newbury Oct 2009 6.10% 63,000 12.44% 468,189 -0.97% 21,462 -15.72% 7,921 -1.66% 10 717 39 339 0.01% 0.07% -0.19% 1.00%

25 Darlington Dec 2009 7.80% 12,290 2.22% 421,617 -19.25% 23,017 -23.74% 2,258 13.52% 9 1,173 323 440 0.08% 0.10% 0.13% 0.16%

26 Ipswich Nov 2009 1.20% 75,700 25.48% n/a n/a n/a n/a n/a n/a 17 n/a n/a n/a n/a n/a n/a n/a

27 Market Harborough Dec 2009 0.60% 61,200 18.66% 320,315 -1.91% 1,214 -10.87% 0 n/a 0 485 238 485 0.07% 0.15% 0.00% 0.00%

28 Melton Mowbray Dec 2009 4.14% 34,000 11.14% 291,102 -2.87% 5,375 -2.91% 0 n/a 3 1,433 543 1,226 0.19% 0.42% 3.10% 3.71%

29 Marsden Dec 2009 2.51% 69,800 27.38% n/a n/a n/a n/a n/a n/a 4 n/a n/a n/a n/a n/a n/a n/a

30 Tipton & Coseley Dec 2009 4.68% 25,550 8.90% 255,242 -6.69% 11,399 -16.15% 0 n/a 2 1,317 396 967 0.15% 0.38% 1.83% 2.98%

31 Hanley Economic Aug 2009 3.87% 31,800 12.44% 242,701 -1.35% 9,039 -5.69% 0 n/a 1 2,751 1,747 2,739 0.71% 1.12% 0.00% 0.13%

32 Scottish Jan 2010 8.40% 59,400 27.95% 221,060 15.40% 19,949 -5.00% 0 n/a 5 255 70 255 0.03% 0.12% 0.00% 0.00%

33 Dudley Mar 2010 1.79% 25,025 10.96% n/a n/a n/a n/a n/a n/a 2 n/a n/a n/a n/a n/a n/a n/a

34 Loughborough Oct 2009 8.17% 22,180 10.52% n/a n/a n/a n/a n/a n/a 5 n/a n/a n/a n/a n/a n/a n/a

35 Mansfield Dec 2009 2.13% 35,900 16.20% 203,970 -6.08% 4,122 -5.48% 0 n/a 5 371 -53 293 -0.03% 0.14% 1.26% 1.86%

36 Teachers Dec 2009 2.68% 16,200 7.45% 193,924 -8.06% 5,098 -22.29% 0 n/a 2 880 -72 880 -0.04% 0.45% -3.96% 0.00%

37 Bath Investment Dec 2009 13.40% 34,100 22.63% 150,021 17.39% 22,807 -0.34% 0 n/a 3 473 130 473 0.09% 0.31% 0.00% 0.00%

38 Vernon Dec 2009 9.58% 15,500 7.68% 165,429 -9.71% 17,037 -8.44% 0 n/a 0 419 65 296 0.04% 0.18% 0.17% 0.72%

39 Chesham Nov 2009 2.33% 2,900 1.48% n/a n/a n/a n/a n/a n/a 0 n/a n/a n/a n/a n/a n/a n/a

Average of Peer Group Societies 4.84% 12.83% -1.89% -10.76% -0.37% 0.08% 0.30% 0.47% 1.16%





Asset Society IFRS Year End Lending Number of Society Total Year FSRP Provisions FSOL Provisions



Loans Loans% £'000 % £'000 % £'000 % £'000 £'000 £'000 % % % %

17 Manchester I Dec 2009 10.35% 5,852 596,222 -2.96% 39,127 -17.19% 8,644 59.99% 2,980 551 2,030 0.09% 0.34% -0.04% 0.25%

18 Cambridge Dec 2009 4.92% 6,799 635,292 -1.17% 29,765 -16.18% 0 n/a 2,517 -293 490 -0.05% 0.08% 4.05% 6.38%

19 Furness Dec 2009 5.12% 9,888 603,979 -5.06% 29,527 -7.63% 0 n/a 1,385 -146 921 -0.02% 0.15% 1.39% 1.55%

20 Saffron Dec 2009 1.00% 5,486 556,767 -3.54% 4,670 -11.62% 0 n/a 2,228 488 2,227 0.09% 0.40% 0.02% 0.02%

21 Leek United Dec 2009 0.37% 8,056 566,689 -2.50% 1,234 -14.42% 0 n/a 1,000 100 1,000 0.02% 0.18% 0.00% 0.00%

22 Monmouthshire Apr 2010 9.71% 5,196 462,663 6.22% 46,643 -6.56% 0 n/a 1,656 53 1,200 0.01% 0.26% 0.18% 0.97%

23 Hinckley & Rugby Nov 2009 0.50% 8,500 477,365 -9.71% 835 -68.06% 0 n/a 600 0 570 0.00% 0.12% 0.00% 3.47%

24 Newbury Oct 2009 6.10% 5,416 412,787 -4.17% 7,404 -13.11% 7,921 -1.66% 572 36 336 0.01% 0.08% -0.16% 0.99%

25 Darlington Dec 2009 7.80% 8,407 421,617 -18.31% 23,017 -23.74% 2,258 13.52% 1,173 323 440 0.08% 0.10% 0.13% 0.16%

26 Ipswich Nov 2009 1.20% 5,993 328,628 11.98% 3,516 -2.44% 0 n/a 736 228 736 0.07% 0.22% 0.00% 0.00%

27 Market Harborough Dec 2009 0.60% 4,813 317,744 -1.65% 1,214 -10.87% 1,557 -37.22% 450 238 450 0.07% 0.14% 0.00% 0.00%

28 Melton Mowbray Dec 2009 4.14% 5,424 255,346 -6.95% 5,375 -2.91% 0 n/a 310 -25 103 -0.01% 0.04% 3.10% 3.71%

29 Marsden Dec 2009 2.51% 4,222 264,254 5.94% 5,081 -7.69% 0 n/a 1,005 52 193 0.02% 0.07% 5.50% 13.78%

30 Tipton & Coseley Dec 2009 4.68% 6,310 255,242 -6.69% 11,399 -16.15% 0 n/a 1,317 396 967 0.15% 0.38% 1.83% 2.98%

31 Hanley Economic Aug 2009 3.87% 4,062 230,287 -0.30% 9,039 -5.69% 0 n/a 2,667 1,747 2,655 0.75% 1.14% 0.00% 0.13%

32 Scottish Jan 2010 8.40% 3,335 219,470 15.63% 19,949 -5.00% 0 n/a 253 70 253 0.03% 0.12% 0.00% 0.00%

33 Dudley Mar 2010 1.79% 3,205 223,901 -0.18% 3,716 -6.00% 0 n/a 1,113 553 1,075 0.25% 0.48% 0.13% 1.01%

34 Loughborough Oct 2009 8.17% 2,681 187,468 -3.65% 16,103 -1.37% 0 n/a 851 32 524 0.02% 0.28% 0.47% 1.99%

35 Mansfield Dec 2009 2.13% 4,155 203,970 -6.08% 4,122 -5.48% 0 n/a 371 -53 293 -0.03% 0.14% 1.26% 1.86%

36 Teachers Dec 2009 2.68% 2,650 193,924 -8.06% 5,098 -22.29% 0 n/a 880 -72 880 -0.04% 0.45% -3.96% 0.00%

37 Bath Investment Dec 2009 13.40% 1,000 150,021 17.39% 22,807 -0.34% 0 n/a 473 130 473 0.09% 0.31% 0.00% 0.00%

38 Vernon Dec 2009 9.58% 2,711 165,429 -9.71% 17,037 -8.44% 0 n/a 419 65 296 0.04% 0.18% 0.17% 0.72%

39 Chesham Nov 2009 2.33% 1,895 169,880 -11.74% 3,342 -18.63% 0 n/a 265 0 235 0.00% 0.14% 0.00% 0.89%

Average of Peer Group Societies 4.84% -1.97% -12.69% 8.66% 0.07% 0.25% 0.61% 1.78%









17 Manchester I Dec 2009 876 2,367 37% 0.14% 0.38% 106 0 n/a 0.25% 0.00%

18 Cambridge Dec 2009 262 228 115% 0.04% 0.04% 336 1,691 20% 1.06% 5.32%

19 Furness Dec 2009 720 271 266% 0.12% 0.04% 250 214 117% 0.83% 0.71%

20 Saffron Dec 2009 1,613 1,034 156% 0.26% 0.17% 1 0 n/a 0.02% 0.00%

21 Leek United Dec 2009 1,000 0 n/a 0.18% 0.00% 0 0 n/a 0.00% 0.00%

22 Monmouthshire Apr 2010 1,022 178 574% 0.22% 0.04% 0 456 n/a 0.00% 0.97%

23 Hinckley & Rugby Nov 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

24 Newbury Oct 2009 308 31 994% 0.07% 0.01% 216 0 n/a 1.00% 0.00%

25 Darlington Dec 2009 114 326 35% 0.03% 0.08% 0 37 n/a 0.00% 0.16%

26 Ipswich Nov 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

27 Market Harborough Dec 2009 485 0 n/a 0.15% 0.00% 0 0 n/a 0.00% 0.00%

28 Melton Mowbray Dec 2009 233 993 23% 0.08% 0.34% 34 173 20% 0.61% 3.10%

29 Marsden Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

30 Tipton & Coseley Dec 2009 368 599 61% 0.14% 0.23% 135 215 63% 1.15% 1.83%

31 Hanley Economic Aug 2009 172 2,567 7% 0.07% 1.05% 12 0 n/a 0.13% 0.00%

32 Scottish Jan 2010 216 39 554% 0.10% 0.02% 0 0 n/a 0.00% 0.00%

33 Dudley Mar 2010 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

34 Loughborough Oct 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

35 Mansfield Dec 2009 231 62 373% 0.11% 0.03% 78 0 n/a 1.86% 0.00%

36 Teachers Dec 2009 550 330 167% 0.28% 0.17% 0 0 n/a 0.00% 0.00%

37 Bath Investment Dec 2009 83 390 21% 0.06% 0.26% 0 0 n/a 0.00% 0.00%

38 Vernon Dec 2009 157 139 113% 0.09% 0.08% 123 0 n/a 0.72% 0.00%

39 Chesham Nov 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a











17 Manchester I Dec 2009 861 1,169 74% 0.14% 0.20% 100 0 n/a 0.25% 0.00%

18 Cambridge Dec 2009 262 228 115% 0.04% 0.04% 336 1,691 20% 1.06% 5.32%

19 Furness Dec 2009 650 271 240% 0.11% 0.04% 250 214 117% 0.83% 0.71%

20 Saffron Dec 2009 1,316 911 144% 0.24% 0.16% 1 0 n/a 0.02% 0.00%

21 Leek United Dec 2009 1,000 0 n/a 0.18% 0.00% 0 0 n/a 0.00% 0.00%

22 Monmouthshire Apr 2010 1,022 178 574% 0.22% 0.04% 0 456 n/a 0.00% 0.97%

23 Hinckley & Rugby Nov 2009 570 0 n/a 0.12% 0.00% 30 0 n/a 3.47% 0.00%

24 Newbury Oct 2009 305 31 984% 0.07% 0.01% 74 0 n/a 0.99% 0.00%

25 Darlington Dec 2009 114 326 35% 0.03% 0.08% 0 37 n/a 0.00% 0.16%

26 Ipswich Nov 2009 388 348 111% 0.12% 0.11% 0 0 n/a 0.00% 0.00%

27 Market Harborough Dec 2009 450 0 n/a 0.14% 0.00% 0 0 n/a 0.00% 0.00%

28 Melton Mowbray Dec 2009 94 9 1044% 0.04% 0.00% 34 173 20% 0.61% 3.10%

29 Marsden Dec 2009 100 93 108% 0.04% 0.04% 150 662 23% 2.55% 11.23%

30 Tipton & Coseley Dec 2009 368 599 61% 0.14% 0.23% 135 215 63% 1.15% 1.83%

31 Hanley Economic Aug 2009 88 2,567 3% 0.04% 1.10% 12 0 n/a 0.13% 0.00%

32 Scottish Jan 2010 214 39 549% 0.10% 0.02% 0 0 n/a 0.00% 0.00%

33 Dudley Mar 2010 625 450 139% 0.28% 0.20% 30 8 375% 0.80% 0.21%

34 Loughborough Oct 2009 409 115 356% 0.22% 0.06% 287 40 718% 1.75% 0.24%

35 Mansfield Dec 2009 231 62 373% 0.11% 0.03% 78 0 n/a 1.86% 0.00%

36 Teachers Dec 2009 550 330 167% 0.28% 0.17% 0 0 n/a 0.00% 0.00%

37 Bath Investment Dec 2009 83 390 21% 0.06% 0.26% 0 0 n/a 0.00% 0.00%

38 Vernon Dec 2009 157 139 113% 0.09% 0.08% 123 0 n/a 0.72% 0.00%

39 Chesham Nov 2009 235 0 n/a 0.14% 0.00% 30 0 n/a 0.89% 0.00%






Table 1Total Assets, Shares, Members and BranchesPeer Group 3




£'000 % Rank £'000 % Rank £'000 % £ % % Number £'000

40 Harpenden Dec 2009 * 198,388 12.68% 2 198,388 12.68% 2 162,751 10.36% 20,738 7,848 11.29% 23.52% 3 66,129 6,913 335

41 Swansea Dec 2009 * 182,236 37.74% 1 182,236 37.74% 1 123,870 21.92% 7,179 17,254 28.36% 42.77% 1 182,236 7,179 994

42 Stafford Railway Oct 2009 * 175,004 9.93% 3 175,004 9.93% 3 147,883 9.61% 14,220 10,398 9.02% 25.76% 1 175,004 14,220 1,662

43 Chorley & District Feb 2010 * 171,746 -3.49% 13 171,746 -3.49% 13 151,557 2.00% 27,658 5,480 5.62% 36.09% 3 57,249 9,219 1,044

44 Beverley Dec 2009 * 165,090 -0.89% 9 165,090 -0.89% 9 132,838 -10.28% 9,865 13,428 12.64% 27.72% 1 165,090 9,865 1,019

45 Buckinghamshire Dec 2009 * 157,849 -1.40% 11 157,849 -1.40% 11 119,342 -5.08% 8,503 13,841 20.12% 26.33% 2 78,925 4,252 323

46 Holmesdale Mar 2010 * 151,697 1.76% 7 151,697 1.76% 7 135,277 1.46% 6,703 20,182 2.01% 38.19% 1 151,697 6,703 1,158

47 Earl Shilton Mar 2010 98,725 0.55% 8 98,634 0.43% 8 90,630 0.23% 12,761 7,102 0.77% 35.58% 2 49,317 6,381 418

48 Ecology Dec 2009 * 93,957 9.12% 4 93,957 9.12% 4 82,181 7.74% 8,392 9,793 5.82% 34.83% 1 93,957 8,392 675

49 Shepshed Dec 2009 * 93,236 -1.12% 10 93,236 -1.12% 10 74,790 -4.59% 12,285 6,084 13.77% 27.30% 3 31,079 4,095 203

50 Penrith Dec 2009 * 88,885 4.60% 6 88,885 4.60% 6 77,618 4.79% 6,234 12,415 0.97% 41.28% 1 88,885 6,234 882

51 City of Derry Dec 2009 * 38,328 5.65% 5 38,328 5.65% 5 35,612 6.14% 2,095 16,999 0.00% 24.77% 1 38,328 2,095 404

52 Century Dec 2009 * 23,672 -2.27% 12 23,672 -2.27% 12 20,726 -1.74% 3,245 6,334 1.27% 21.62% 1 23,672 3,245 242


Average of Peer Group Societies 5.60% 5.60% 3.27% 11,320 8.59% 31.21% 92,428 6,830 720





Table 2a Group or Society Profitability RatiosPeer Group 3




Current Year Pre-provision Current Year Prior YearX £'000 % % % Rank % £'000 % £'000 £'000 % £'000 £'000

40 Harpenden Dec 2009 * - 1,756 94.25% 0.94% 2.20% 47.58% 1.27% 10 0.81% 128 4.90% 2,485 1,415 75.62% 48 160

41 Swansea Dec 2009 * - 931 78.01% 0.59% 1.72% 50.72% 0.94% 4 0.80% 30 2.09% 1,404 908 54.63% 97 234

42 Stafford Railway Oct 2009 * - 1,256 66.80% 0.75% 2.03% 35.51% 0.72% 2 0.71% 165 7.50% 2,034 1,138 78.73% 280 305

43 Chorley & District Feb 2010 * - 528 135.34% 0.30% 1.53% 70.88% 1.21% 9 1.03% 181 20.78% 690 314 119.75% 18 119

44 Beverley Dec 2009 * X 733 185.21% 0.44% 1.32% 45.54% 0.63% 1 0.57% 361 28.67% 898 1,015 -11.53% 13 163

45 Buckinghamshire Dec 2009 * - 95 97.92% 0.06% 1.13% 89.82% 1.04% 6 1.01% 40 21.28% 148 239 -38.08% 0 120

46 Holmesdale Mar 2010 * - 102 148.78% 0.07% 0.93% 92.78% 0.91% 3 0.86% 20 18.87% 86 257 -66.54% -45 121

47 Earl Shilton Mar 2010 X 345 126.60% 0.35% 1.30% 96.98% 1.37% 11 1.26% 153 364.29% -111 233 -147.64% 0 197

48 Ecology Dec 2009 * - 344 7.84% 0.38% 1.83% 63.32% 1.19% 8 1.14% 118 19.00% 503 497 1.21% 39 88

49 Shepshed Dec 2009 * - 168 58.49% 0.18% 1.64% 78.28% 1.39% 12 1.26% 124 34.35% 237 227 4.41% 19 73

50 Penrith Dec 2009 * - 337 127.70% 0.39% 1.57% 70.75% 1.14% 7 1.10% 1 0.24% 408 316 29.11% -27 74

51 City of Derry Dec 2009 * - 89 -47.95% 0.24% 1.48% 62.09% 0.96% 5 0.90% 92 42.01% 126 256 -50.78% 11 34

52 Century Dec 2009 * - 5 66.67% 0.02% 1.57% 98.15% 1.55% 13 1.54% 91 1516.67% -85 -34 -150.00% -42 20

Average of Peer Group Societies 88.13% 0.36% 1.56% 69.42% 1.10% 1.00%










40 Harpenden Dec 2009 * 13,105 - 365 0 13,470 6.79% 14.99% 11,714 6.65% 0 0 7.34% 7.00%

41 Swansea Dec 2009 * 6,546 - 129 0 6,675 3.66% 16.21% 5,744 4.34% 0 1,500 4.73% 4.41%

42 Stafford Railway Oct 2009 * 11,135 - 0 0 11,135 6.36% 12.71% 9,879 6.21% 0 0 6.85% 6.56%

43 Chorley & District Feb 2010 * 10,732 - 0 0 10,732 6.25% 5.17% 10,204 5.73% 0 0 6.68% 5.64%

44 Beverley Dec 2009 * 7,989 - 698 0 8,687 5.26% 8.97% 7,972 4.79% 0 3,090 7.77% 7.13%

45 Buckinghamshire Dec 2009 * 8,926 - 874 0 9,800 6.21% 0.77% 9,725 6.07% 0 0 6.65% 5.49%

46 Holmesdale Mar 2010 * 12,805 - 444 0 13,249 8.73% 0.78% 13,147 8.82% 0 0 9.60% 9.16%

47 Earl Shilton Mar 2010 7,082 - 0 0 7,082 7.17% 5.12% 6,737 6.86% 0 0 7.75% 7.73%

48 Ecology Dec 2009 * 4,746 - 0 0 4,746 5.05% 7.81% 4,402 5.11% 0 1,491 7.15% 5.74%

49 Shepshed Dec 2009 * 6,122 - 0 0 6,122 6.57% 2.82% 5,954 6.31% 0 0 7.06% 6.50%

50 Penrith Dec 2009 * 10,211 - 0 0 10,211 11.49% 3.41% 9,874 11.62% 0 0 13.03% 13.02%

51 City of Derry Dec 2009 * 2,579 - 0 0 2,579 6.73% 3.57% 2,490 6.86% 0 0 7.24% 6.39%

52 Century Dec 2009 * 2,671 - 0 16 2,687 11.35% -0.33% 2,696 11.13% 0 0 12.91% 12.89%


* denotes no Group: therefore Society reserves and capital included as Group








Current Year Pre-provision

X £'000 % % % % % % % £'000 % £'000 % Rank %

40 Harpenden Dec 2009 - 1,756 94.25% 2.20% 4.57% 2.16% 2.41% 17.23% 47.58% 128 4.90% 2,372 1.27% 10 0.81%

41 Swansea Dec 2009 - 931 78.01% 1.72% 4.42% 2.01% 2.41% 7.29% 50.72% 30 2.09% 1,476 0.94% 4 0.80%

42 Stafford Railway Oct 2009 - 1,256 66.80% 2.03% 4.04% 2.25% 1.79% 1.02% 35.51% 165 7.50% 1,211 0.72% 2 0.71%

43 Chorley & District Feb 2010 - 528 135.34% 1.53% 4.50% 2.00% 2.50% 10.63% 70.88% 181 20.78% 2,120 1.21% 9 1.03%

44 Beverley Dec 2009 X 733 185.21% 1.32% 3.26% 1.85% 1.41% 6.23% 45.54% 361 28.67% 1,053 0.63% 1 0.57%

45 Buckinghamshire Dec 2009 - 95 97.92% 1.13% 4.22% 2.21% 2.01% 2.60% 89.82% 40 21.28% 1,658 1.04% 6 1.01%

46 Holmesdale Mar 2010 - 102 148.78% 0.93% 3.65% 2.19% 1.46% 4.50% 92.78% 20 18.87% 1,362 0.91% 3 0.86%

47 Earl Shilton Mar 2010 X 507 139.76% 1.30% 3.52% 1.72% 1.80% 8.56% 95.07% 153 231.82% 1,292 1.31% 11 1.23%

48 Ecology Dec 2009 - 344 7.84% 1.83% 4.34% 1.61% 2.73% 2.78% 63.32% 118 19.00% 1,072 1.19% 8 1.14%

49 Shepshed Dec 2009 - 168 58.49% 1.64% 3.81% 2.11% 1.70% 9.78% 78.28% 124 34.35% 1,301 1.39% 12 1.26%

50 Penrith Dec 2009 - 337 127.70% 1.57% 3.60% 2.03% 1.57% 2.15% 70.75% 1 0.24% 987 1.14% 7 1.10%

51 City of Derry Dec 2009 - 89 -47.95% 1.48% 4.51% 2.49% 2.02% 4.00% 62.09% 92 42.01% 357 0.96% 5 0.90%

52 Century Dec 2009 - 5 66.67% 1.57% 6.11% 4.54% 1.57% 0.79% 98.15% 91 1516.67% 372 1.55% 13 1.54%





Table 4 Society Staff Ratios, Pension Costs and Group IAS19/FRS17 DataPeer Group 3






40 Harpenden Dec 2009 28 990 36.00 63.85 7,214 793 117 14.75% No n/a n/a n/a n/a n/a

41 Swansea Dec 2009 15 651 43.40 62.07 12,149 509 82 16.11% No n/a n/a n/a n/a n/a

42 Stafford Railway Oct 2009 13 546 43.68 100.48 14,000 484 32 6.61% No n/a n/a n/a n/a n/a

43 Chorley & District Feb 2010 43 1,140 26.51 12.28 3,994 980 66 6.73% No n/a n/a n/a n/a n/a

44 Beverley Dec 2009 12 472 41.04 63.74 14,356 389 40 10.28% No n/a n/a n/a n/a n/a

45 Buckinghamshire Dec 2009 22 906 42.14 4.42 7,342 767 58 7.56% No n/a n/a n/a n/a n/a

46 Holmesdale Mar 2010 18 869 49.66 5.83 8,668 711 94 13.22% Y - Closed 0 0.00% n/a 5.50 3.90

47 Earl Shilton Mar 2010 21 694 33.85 24.73 4,811 517 135 26.11% No n/a n/a n/a n/a n/a

48 Ecology Dec 2009 16 509 31.81 21.50 5,872 433 33 7.62% No n/a n/a n/a n/a n/a

49 Shepshed Dec 2009 19 659 34.68 8.84 4,907 549 66 12.02% No n/a n/a n/a n/a n/a

50 Penrith Dec 2009 14 542 40.15 24.96 6,584 372 131 35.22% No n/a n/a n/a n/a n/a

51 City of Derry Dec 2009 5 180 36.00 17.80 7,666 146 21 14.38% No n/a n/a n/a n/a n/a

52 Century Dec 2009 6 216 36.00 0.83 3,945 174 20 11.49% No n/a n/a n/a n/a n/a

Average of Peer Group Societies 38.07 31.64 7,808 14.01% 0.00% n/a 5.50% 3.90%








% to Total Loans Loans% £'000 P/Yr loans £'000 % £'000 % £'000 % Number £'000 £'000 £'000 % % % %

40 Harpenden Dec 2009 9.25% 52,000 40.14% n/a n/a n/a n/a n/a n/a n/s n/a n/a n/a n/a n/a n/a n/a

41 Swansea Dec 2009 8.93% 26,000 28.10% n/a n/a n/a n/a n/a n/a 1 n/a n/a n/a n/a n/a n/a n/a

42 Stafford Railway Oct 2009 4.65% 30,160 24.85% n/a n/a n/a n/a n/a n/a 2 n/a n/a n/a n/a n/a n/a n/a

43 Chorley & District Feb 2010 1.40% 14,569 12.27% n/a n/a n/a n/a n/a n/a 7 n/a n/a n/a n/a n/a n/a n/a

44 Beverley Dec 2009 10.98% 13,281 10.78% n/a n/a n/a n/a n/a n/a 0 n/a n/a n/a n/a n/a n/a n/a

45 Buckinghamshire Dec 2009 6.16% 19,000 16.72% n/a n/a n/a n/a n/a n/a n/s n/a n/a n/a n/a n/a n/a n/a

46 Holmesdale Mar 2010 5.81% 11,947 11.28% n/a n/a n/a n/a n/a n/a 0 n/a n/a n/a n/a n/a n/a n/a

47 Earl Shilton Mar 2010 7.47% 10,560 15.99% 61,073 -0.07% 4,381 -10.99% 0 n/a 2 302 141 221 0.23% 0.36% 0.27% 1.82%

48 Ecology Dec 2009 14.79% 12,600 22.11% n/a n/a n/a n/a n/a n/a 0 n/a n/a n/a n/a n/a n/a n/a

49 Shepshed Dec 2009 5.88% 11,900 18.77% n/a n/a n/a n/a n/a n/a 15 n/a n/a n/a n/a n/a n/a n/a

50 Penrith Dec 2009 4.35% 5,917 9.93% n/a n/a n/a n/a n/a n/a 3 n/a n/a n/a n/a n/a n/a n/a

51 City of Derry Dec 2009 1.81% 2,917 10.40% n/a n/a n/a n/a n/a n/a 7 n/a n/a n/a n/a n/a n/a n/a

52 Century Dec 2009 2.63% 2,650 14.08% n/a n/a n/a n/a n/a n/a 6 n/a n/a n/a n/a n/a n/a n/a

Average of Peer Group Societies 6.47% 18.11% -0.07% -10.99% n/a 0.23% 0.36% 0.27% 1.82%





Society FSRP Provisions FSOL ProvisionsAsset Society IFRS Year End Lending Number of Total Year



Loans Loans% £'000 % £'000 % £'000 % £'000 £'000 £'000 % % % %

40 Harpenden Dec 2009 9.25% 1,006 140,323 18.50% 13,952 25.37% 0 n/a 0 128 0 0.09% 0.00% 0.00% 0.00%

41 Swansea Dec 2009 8.93% 994 98,109 17.04% 9,379 7.77% 0 n/a 30 30 30 0.03% 0.03% 0.00% 0.00%

42 Stafford Railway Oct 2009 4.65% 1,662 126,252 10.12% 6,067 -9.38% 0 n/a 289 165 279 0.13% 0.22% 0.00% 0.16%

43 Chorley & District Feb 2010 1.40% 3,131 110,444 -6.01% 1,082 -13.65% 0 n/a 377 181 377 0.16% 0.34% 0.00% 0.00%

44 Beverley Dec 2009 10.98% 1,019 108,055 -1.53% 13,129 -2.88% 0 n/a 494 321 441 0.30% 0.41% 0.30% 0.40%

45 Buckinghamshire Dec 2009 6.16% 645 110,010 2.78% 7,244 10.34% 0 n/a 220 32 212 0.03% 0.19% 0.11% 0.11%

46 Holmesdale Mar 2010 5.81% 1,158 92,673 -7.43% 5,468 -5.40% 0 n/a 148 0 118 0.00% 0.13% 0.36% 0.55%

47 Earl Shilton Mar 2010 7.47% 835 61,073 -0.07% 4,381 -10.99% 0 n/a 302 141 221 0.23% 0.36% 0.27% 1.82%

48 Ecology Dec 2009 14.79% 675 53,070 11.87% 9,002 -5.62% 0 n/a 170 74 101 0.14% 0.19% 0.49% 0.76%

49 Shepshed Dec 2009 5.88% 608 64,909 9.88% 4,009 -7.52% 0 n/a 498 111 498 0.17% 0.76% 0.00% 0.00%

50 Penrith Dec 2009 4.35% 882 53,259 -5.37% 2,883 -12.10% 0 n/a 102 1 102 0.00% 0.19% 0.00% 0.00%

51 City of Derry Dec 2009 1.81% 404 28,563 3.81% 529 0.95% 0 n/a 109 92 109 0.32% 0.38% 0.00% 0.00%

52 Century Dec 2009 2.63% 242 18,509 2.24% 434 -39.55% 0 n/a 155 91 155 0.49% 0.83% 0.00% 0.00%

Average of Peer Group Societies 6.47% 4.29% -4.82% n/a 0.16% 0.31% 0.12% 0.29%









40 Harpenden Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

41 Swansea Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

42 Stafford Railway Oct 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

43 Chorley & District Feb 2010 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

44 Beverley Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

45 Buckinghamshire Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

46 Holmesdale Mar 2010 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

47 Earl Shilton Mar 2010 191 30 637% 0.31% 0.05% 81 0 n/a 1.82% 0.00%

48 Ecology Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

49 Shepshed Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

50 Penrith Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

51 City of Derry Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

52 Century Dec 2009 n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a

Total Total Peer Gp Ratio Total Total Peer Gp Ratio191 30 637% 81 0 n/a










40 Harpenden Dec 2009 0 0 n/a 0.00% 0.00% 0 0 n/a 0.00% 0.00%

41 Swansea Dec 2009 0 30 n/a 0.00% 0.03% 0 0 n/a 0.00% 0.00%

42 Stafford Railway Oct 2009 251 28 896% 0.20% 0.02% 10 0 n/a 0.16% 0.00%

43 Chorley & District Feb 2010 100 277 36% 0.09% 0.25% 0 0 n/a 0.00% 0.00%

44 Beverley Dec 2009 434 7 6200% 0.40% 0.01% 53 0 n/a 0.40% 0.00%

45 Buckinghamshire Dec 2009 174 38 458% 0.16% 0.03% 8 0 n/a 0.11% 0.00%

46 Holmesdale Mar 2010 100 18 556% 0.11% 0.02% 30 0 n/a 0.55% 0.00%

47 Earl Shilton Mar 2010 191 30 637% 0.31% 0.05% 81 0 n/a 1.82% 0.00%

48 Ecology Dec 2009 62 39 159% 0.12% 0.07% 52 17 306% 0.57% 0.19%

49 Shepshed Dec 2009 94 404 23% 0.14% 0.62% 0 0 n/a 0.00% 0.00%

50 Penrith Dec 2009 102 0 n/a 0.19% 0.00% 0 0 n/a 0.00% 0.00%

51 City of Derry Dec 2009 0 109 n/a 0.00% 0.38% 0 0 n/a 0.00% 0.00%

52 Century Dec 2009 0 155 n/a 0.00% 0.83% 0 0 n/a 0.00% 0.00%

Total Total Peer Gp Ratio Total Total Peer Gp Ratio1,508 1,135 133% 234 17 1,376%






Explanations of the tables, statistics and ratios

This section explains the bases for the statistics and ratios in the various Database tables.

Group or Society data

A mixture of group and society data is used in this survey.

The table headings and the column headers all state whether

data is group or society. The statutory ratios extracted directly

from the Annual Business Statement will be group where a

society has subsidiary undertakings: otherwise these will be

society only.

Calculation of ratios

A number of statutory ratios as disclosed in the Annual

Business Statement of each society are listed. These comprise

the funding and lending limits, liquid assets, profit as a

percentage of mean assets and gross and free capital. Other

ratios and percentages which are calculated for the purposes

of this survey and which may not be clear are explained in the

sections below.

Averages

For each page of statistics an average for each ratio is provided.

This is calculated from the societies on that particular page and

all are given as simple averages.

In Tables 7 and 8, Group and Society Loans and Advances 2:

Provisions, the Peer Group ratio for the total general provisions

is given as a percentage of total specific provisions. As this is

not a simple average it is shown on a separate line to the

other averages.

Table 1: Total Assets, Shares, Members and Branches

Asset rankings and total assets

For all three Peer Groups the asset ranking shows the position of

each society in terms of total group assets or total society assets

if appropriate.

Asterisks (*) are used to identify societies that are not group

societies and therefore society data is included as group data.

The key ratios for Funding Limit and Liquid Assets are group

ratios where a society has subsidiaries – otherwise these are

society only ratios.

Society shares

This is the total value of shares as disclosed in the society

balance sheet; and includes both shares held by individuals,

other shares and any accrued interest. For IFRS societies,

in order to retain comparability with UK GAAP societies, this

survey excludes any fair value amounts disclosed within the

shares note. The percentage disclosure is the increase from

the equivalent prior year society total shares.

Average balance per shareholder

This comprises the total society shareholders (from the Building

Societies Association Yearbook 2009/10), divided into shares held

by individuals (including accrued interest) as disclosed in the

relevant note to the accounts. For IFRS societies, shares exclude

any disclosed fair value adjustments.

Funding limit

This is a statutorily defined ratio (Building Societies Act 1986,

Section 7) and is as disclosed in the Annual Business Statement:

this ratio will be on a group basis where a society prepares group

accounts. Total shares and deposits include debt securities in

issue. For IFRS societies, this excludes derivative financial

instruments. The purpose of this ratio is to disclose shares not

held by individuals, plus all deposits and debt securities held,

as a percentage of total shares and deposits. This is effectively a

form of wholesale funding ratio, although the ratio as disclosed

will include any retail deposits and also wholesale funding

from entities other than credit institutions. A lower percentage

disclosure indicates a society or group with a greater proportion

of funding from individual retail shareholders.

Liquid assets

This ratio is as disclosed in the Annual Business Statement:

this will be on a group basis where a society prepares group

accounts. The ratio basis is also disclosed in the Annual

Business Statement and comprises liquid assets, as disclosed

in the balance sheet as a percentage of total shares and deposit

liabilities. Liquid assets include any debt securities held but,

for IFRS societies, exclude derivative financial instruments. Total

shares and deposits include any debt securities in issue but, for

IFRS societies, exclude derivative financial instruments.

Data source for society branches and shareholding and

borrowing members

These are taken from the Building Societies Association Yearbook

2009/10.

Branches

Where a society does not have any branches and therefore

carries out all its business from its principal office, this is

regarded as being a single branch. Therefore all societies are

regarded as having at least one branch and this basis is used

in ratios calculated using number of branches. Branches of

subsidiary companies, for example estate agencies, are ignored

for these purposes.


Table 2a: Group or Society Profitability Ratios

Asterisks (*) are applied to those societies that are not group

societies and therefore society profitability data is included

as group data.

Exceptional items

Where a group accounts society has exceptional items within

its Income and Expenditure Account; other than the FSCS Levy,

this is denoted by an “X” in this column. In such cases, key

profitability measures can be distorted and reference should be

made to the relevant published accounts. Significant exceptional

items for 2009/10 have included credits against impairment

provisions made in the previous year against deposits with

Icelandic Banks.

Group profit for the year

Profit for the year is always the bottom line profit for the

year: ie after all charges, exceptional items, taxation and

extraordinary items.

Group or Society profit for year/mean assets

This is the ratio as disclosed by societies in the Annual Business

Statement. Where a society does not have subsidiaries, this will

be a society only ratio.

Group net interest margin as a percentage of mean assets

This is group net interest receivable expressed as a percentage

of the simple average of the group’s total assets as at the end

of the current and preceding years. For IFRS societies this

survey uses the equivalent term net interest income.

Group cost to income ratio

This ratio expresses the ‘ordinary’ administrative expenses plus

depreciation and amortisation as a percentage of total income.

‘Ordinary’ administrative expenses exclude any exceptional

administrative expenses that may be disclosed on the face

of the Income and Expenditure Account but includes any such

exceptional costs that may be disclosed in the notes to the

accounts. For IFRS societies, where separately disclosed,

the caption includes amortisation of intangible assets.

Total income consists of net interest receivable plus all the

component parts of other income and charges, including

income from associated bodies and where stated, income from

investments. Total income for this ratio is generally the sub-total

before administrative expenses. Therefore total income also

includes pension finance charges and, for IFRS societies, any

gains or losses relating to financial instruments disclosed after

net interest income.

In order to assist comparability, when a society discloses other

operating charges (after administrative expenses) these are

deducted from total income for the purpose of this cost to

income ratio only. To avoid doubt, other operating charges are

not included in the ‘cost’ side of the cost to income ratio, but

instead as negative income.

Group management expenses as a percentage of mean assets

This is group management expenses (as defined below)

expressed as a percentage of the simple average of the total

group assets as at the end of the current and preceding years.

This is referred to as ‘ManEx’ in the table.

Management expenses comprise of ‘ordinary’ administrative

expenses plus depreciation as disclosed on the face of the

group Income and Expenditure Account. For IFRS societies,

the equivalent captions are used together with amortisation

of intangible assets where disclosed. Management expenses

exclude other operating charges.

In order to assist comparability any exceptional or extraordinary

administrative expenses shown separately on the face of the

Income and Expenditure Account are excluded. Exceptional

expenses disclosed within the administrative expenses note

are included in the ratio calculation.

Group management expenses, less other income, as a

percentage of mean assets

This is management expenses (ManEx), less other income

and charges (see definition below), expressed as a percentage

of the simple average of the total group assets as at the end of

the current and preceding years. For this particular ratio, other

income and charges comprise of income from investments

and income from associated bodies (where disclosed), plus fees

and commissions receivable, plus other operating income, less

pension finance charge and less fees and commissions payable

and also less other operating charges where these are disclosed.

For IFRS societies, any gains or losses relating to financial

instruments disclosed after net interest income are also included

as other income.

Group mortgage loss provisions charge (credit) for year divided

into profit pre-provision

This is the charge relating to provisions for mortgage losses

as shown on the face of the Income and Expenditure Account,

expressed as a percentage of the profit before such provisions.

For IFRS societies this survey uses the equivalent impairment

loss caption. Some societies include provisions against other

items in an overall ‘Provisions’ caption: in such cases this survey

only includes the actual mortgage loss or impairment provisions,

as disclosed in the relevant note. A negative ratio indicates a

mortgage loss or impairment provision credit to the Income and

Expenditure Account, caused either by excess recoveries or by

the society reducing the total mortgage loss provisions.

Where practicable, the Profit pre-provision is adjusted to

exclude the effect of exceptional charges or credits disclosed

above that caption.

Recurring profit including mortgage loss provisions

As the title states ‘recurring profit’ is taken after mortgage loss

provisions are charged or credited. Where practicable, recurring

profit is adjusted to exclude the effect of exceptional charges or

credits disclosed above that caption.



Explanations of the tables, statistics and ratios (continued)

FSCS Levy Charge (Credit) and Provision

The Levy charge (credit) is the Group or Society charge or credit

as disclosed in the Income and Expenditure Account.

The Provision is as disclosed on a society’s balance sheet or

within a provisions note to the accounts. Following clarification

by the FSA in early 2010, most societies with year ends of

November 2009 and thereafter now provide only for FSCS

Levies incurred as result of their market participation as at each

December 31, being the annual levy assessment date. Many

societies have disclosed a reduction in their FSCS Levy provision

for 2009/2010, with a consequent credit for FSCS Levies in the

Income and Expenditure Account.

Table 2b: Group or Society Reserves and Capital

Asterisks (*) are used to identify societies that are not group

societies and therefore the society reserves and capital are

included as group data.

Group total reserves to total assets

These are all group where group accounts are prepared and are

calculated including revaluation reserves, IFRS reserves, other

reserves and minority interests, where relevant.

Prior year total reserves

These are on the same basis as the current year total reserves.

Gross and free capital ratios

These ratios are as disclosed in a society’s Annual Business

Statement and are group ratios for a group accounts society.

The bases for the gross and free capital ratios are defined in

the Building Societies Accounts Regulations (Schedule 9(2) and

Schedule 11(3)).

Gross capital comprises all reserves (including all IFRS reserves),

subordinated debt, Permanent Interest Bearing Shares (PIBS)


and minority interests. More recently, it has been understood

that gross capital should include profit participating deferred

shares and other new forms of capital.

Free capital comprises gross capital plus general/collective

mortgage loss provisions, less tangible and intangible fixed

assets and, in some IFRS societies, investment properties.

Gross and free capital are required by the Accounts Regulations

to be expressed as a percentage of total share and deposit

liabilities, including debt securities in issue, but excluding

derivative financial instruments.

Table 3: Society Profitability Ratios

These are all society only ratios.

Exceptional items

Where a society has exceptional items within its Income and

Expenditure Account – other than the FSCS Levy – then this is

denoted by an “X” in this column. In such cases, key profitability

measures can be distorted and reference should be made to

the relevant published accounts. Significant exceptional items

for 2009/10 have included credits against impairment provisions

made in the previous year, against deposits with Icelandic Banks.

Society profit for the year

Profit for the year is always the bottom line profit for the

year: ie after all charges, exceptional items, taxation and

extraordinary items.

Society net interest margin as a percentage of mean assets

This is net interest receivable expressed as a percentage of the

simple average of the society’s total assets as at the end of the

current and preceding years. For IFRS societies the equivalent

caption of net interest income is used.

Society interest receivable as a percentage of mean FSRP

Interest receivable comprises the specific caption ‘On loans fully

secured on residential property’ within interest receivable and

similar income. With effect from The Building Societies Database

2008, interest receivable on FSRP loans has been calculated

as net of net income or expense on financial instruments, as

disclosed in the same note. This means that the interest spread

data is not fully comparable with that disclosed in The Building

Societies Database 2007 and earlier years.

Mean FSRP is the mean of the current year and prior year

FSRP but after adding back FSRP provisions and Mortgage

Guarantee Insurance (MIG) deductions, where such deductions

are made from Loans and Advances to Customers in the Notes

for UK GAAP societies. For the MIG add-back this year’s survey

assumes that the MIG relates entirely to FSRP loans, although

the impact of such MIG is usually not material. For IFRS

societies, any fair value amounts disclosed in the Loans/FSRP

Note are excluded in order to maintain comparability with UK

GAAP societies.

Society interest payable as a percentage of mean shares

Interest payable applies only ‘on shares held by individuals’

within interest payable and similar charges. With effect from

The Building Societies Database 2008, interest payable on

shares held by individuals has been calculated as net of net

income or expense on financial instruments, as disclosed in

the same note. This means that the interest spread data is not

fully comparable with that disclosed in The Building Societies

Database 2007 and prior years.

Mean shares are the mean of the current and prior year total

shares held by individuals as disclosed in the relevant note to

the accounts. For IFRS societies, any fair value amounts

disclosed in the Shares Note are excluded, in order to maintain

comparability with UK GAAP societies.


Society interest spread for members

This is the difference achieved by deducting the ratio for interest

payable on shares from the ratio for interest receivable from

FSRP loans: the result being the interest spread on member

transactions. As stated above, due to the change in the interest

data used for The Building Societies Database 2008 onwards, thi

interest spread data is not fully comparable with that disclosed in

The Building Societies Database 2007 and earlier years.

Society other income and charges divided into total income

This ratio expresses other income and charges as a percentage

of total income. Other income and charges includes every captio

after net interest receivable (for IFRS societies - net interest

income) but before management expenses, for both UK GAAP

and IFRS societies.

Total income comprises net interest receivable plus all the

component parts of other income and charges, as explained

above. Total income will normally be the sub-total before

administrative expenses.

Society cost to income ratio

This ratio is on the same calculation basis as the Group cost to

income ratio (see above) except that there may be some

income from investments or subsidiaries also included within

total income.

Society mortgage loss provisions charge (credit) divided into profi

pre-provision

This is the charge relating to provisions for mortgage losses as

shown on the face of the Income and Expenditure Account,

expressed as a percentage of the profit before such provisions.

For IFRS societies this survey uses the equivalent impairment

captions. Some societies include provisions against other matter

in an overall ‘Provisions’ caption: in such cases this survey only

includes the actual mortgage loss or impairment provisions,

s

n

t

s

as disclosed in the relevant note. A negative ratio indicates a

mortgage loss or impairment provision credit to the Income and

Expenditure Account, caused either by excess recoveries or by

the society reducing the total mortgage loss provisions.

Where practicable, the profit pre-provision is adjusted to exclude

exceptional charges or credits disclosed above that caption.

Society management expenses

This comprises the ‘ordinary’ administrative expenses caption plus

depreciation as disclosed on the face of each society’s Income

and Expenditure Account. For IFRS societies, the equivalent

captions include, where disclosed, amortisation of intangible

assets. To avoid doubt, management expenses exclude other

operating charges where disclosed by a society.

To assist in comparability any exceptional or extraordinary

administrative expenses shown separately on the face of the

Income and Expenditure Account have been excluded. Exceptional

expenses disclosed within the administrative expenses note are

included in the ratio calculation.

Society management expenses as a percentage of mean assets

This is management expenses (see Society management

expenses) expressed as a percentage of the simple average

of the total society assets as at the end of the current and

preceding years.

Society management expenses, less other income, as a

percentage of mean assets

This is management expenses (see Society management

expenses), less other income and charges (defined below),

expressed as a percentage of the simple average of the total

society assets as at the end of the current and preceding years.

For this particular ratio, other income and charges comprise of

income from investments, or associates, or subsidiaries (where

disclosed), plus fees and commissions receivable, plus other

operating income, less pension finance charge, less fees and

commissions payable and also less other operating charges

where these are disclosed. For IFRS societies, any gains or

losses relating to financial instruments disclosed after net interest

income are also included as other income.

Table 4: Society Staff Ratios, Pension Costs and Group IAS19 or FRS17 Data

These are all society only ratios, except for the IAS19/FRS17

(Retirement Benefits) disclosures, which are group unless a

society does not have subsidiary undertakings.

Total number of staff

Staff numbers are calculated on the basis that two part time

staff are equivalent to one full time staff member. Staff numbers

include executive directors when shown separately but exclude

non-executive directors if shown separately. Society branch staff

are included, but all subsidiary staff are ignored, where disclosed.

Some societies do not disclose their part time staff numbers,

which results in a comparatively higher number of staff being

disclosed than for those societies that do provide such analysis.

Society pension costs

These are the society’s other pension costs as a percentage

of society total wages and salaries. This is not as a percentage

of total staff costs.

Group IAS19 or FRS17 disclosures

This information is obtained from a society’s accounting policy and

pensions note. Where it is not clear that a society has closed its

defined benefit scheme to new entrants, this survey records it as

still open.



Explanations of the tables, statistics and ratios (continued)

Each UK GAAP defined pension scheme deficit or surplus

is assumed to be disclosed after deferred tax at 28 percent.

To ensure comparability with UK GAAP societies the defined

pension scheme deficits or surpluses of IFRS societies are input

after a deduction of 28 percent for deferred tax. The resultant net

defined benefit pension scheme deficit or surplus for all societies

is then expressed as a percentage of group general reserves.

Table 5: Group Loans and Advances (1): Arrears and Provisions

Note: ‘FSRP’ refers to loans fully secured on residential property.

‘FSOL’ refers to loans fully secured on land.

With effect from its April 2010 published accounts, Nationwide

Building Society has ceased to analyse its lending as FSRP,

FSOL and Other, and is no longer comparable to other building

societies in this respect: therefore Nationwide is indicated as

‘n/a’ in most of Tables 5 to 8.

Lending limit

This is a statutorily defined ratio (Building Societies Act 1986,

Section 6) and is as disclosed in the Annual Business Statement:

this ratio is required to be disclosed on a group basis where a

society prepares group accounts.

The purpose of this ratio is to disclose total lending, plus certain

sundry assets, but excluding loans fully secured on residential

property, as a percentage of the society’s (or group’s) business

assets – being the total of all lending plus certain sundry

assets. A higher percentage indicates a higher proportion of

lending other than loans fully secured on residential property.

Conversely, a lower lending limit ratio indicates a society with a

higher proportion of loans fully secured on residential property.

Group or Society gross mortgage lending

This is Group gross mortgage lending in the year, extracted as

disclosed either in the Directors’ Report, or elsewhere from the

‘front end’ of the accounts package, or, in some cases, by KPMG

enquiry to the society. Where a society does not have subsidiaries

then this is a society only disclosure. This data excludes any

mortgage book acquisitions where a society discloses such

acquisitions and states that they have been included within the

gross lending disclosure. Gross mortgage lending is expressed

as a percentage of prior year total group or society mortgage

assets in the balance sheet i.e. FSRP plus FSOL plus Other loans.

For IFRS societies, any fair value adjustments disclosed in the

loans notes are excluded from the total loan numbers.

FSRP loans, FSOL loans and Other loans

These are the total loan categories as disclosed in the group

balance sheet. For IFRS societies, this survey ignores any related

fair value amounts that are disclosed within the relevant notes.

The percentage disclosure is the increase from the prior year

equivalent group total FSRP, FSOL or Other loans.

Accounts 12 or more months in arrears

In all cases this figure is extracted from the Directors’ Report.

The disclosure is required by the Building Societies Accounts

Regulations to be within the Directors’ Report and to be a group

disclosure. However where a society discloses the society only

number then that is the number used in this survey.

Total year end mortgage loss provisions

This comprises the total provisions against loans and therefore

includes mortgage loss provisions relating to FSRP, FSOL and

Other loans. Such provisions do not include any ‘other provisions’

that may be disclosed in the provisions note to the accounts.

The total mortgage loss provisions include both general and

specific mortgage loss provisions. For IFRS societies, collective

provisions have been input as general provisions and individual

provisions as specific provisions.

Charges and provisions related to FSRP and FSOL

In all cases the FSRP and FSOL asset totals used are the gross

asset totals before the deduction of year end mortgage loss

provisions. In this table the charges or credits to income are as

disclosed in the mortgage loss or impairment provision tables

and ignore any subsequent adjustments that may be made in

arriving at the charge or credit to income, for example relating

to recoveries.

Table 6: Society Loans and Advances (1): Provisions

Note: ‘FSRP’ refers to loans fully secured on residential property.

‘FSOL’ refers to loans fully secured on land.

With effect from its April 2010 published accounts, Nationwide

Building Society has ceased to analyse its lending as FSRP,

FSOL and Other, and is no longer comparable to other building

societies in this respect. Therefore Nationwide is indicated as

‘n/a’ in most of Tables 5 to 8.

Lending limit

As defined in Table 5. Group Loans and Advances (1): Arrears

and Provisions.

Data source for number of society borrowing members

These are taken from the latest available consistent published

source, being the latest Building Societies Association Yearbook

2009/10.

FSRP loans, FSOL loans and Other loans

These are the total loan categories as disclosed in the society

balance sheet. For IFRS societies, this survey ignores any related

fair value amounts that are disclosed within the relevant notes.

The percentage disclosure is the increase from the prior year

equivalent society total FSRP, FSOL or Other loans.



Total year end mortgage loss provisions

This comprises the total provisions against loans and therefore

includes mortgage loss provisions relating to FSRP, FSOL

and Other loans. Such provisions do not include any ‘other

provisions’ that may be disclosed in the provisions note to

the accounts. The total mortgage loss provision includes

both general and specific mortgage loss provisions. For IFRS

societies, collective provisions have been input as general

provisions and individual provisions as specific provisions.

Charges and provisions related to FSRP and FSOL

In all cases the FSRP and FSOL asset totals used are the gross

assets before the deduction of year end provisions. In this

table the charges or credits to income are as disclosed in the

mortgage loss or impairment provision tables and ignore any

subsequent adjustments that may be made in arriving at the

charge or credit to income, for example relating to recoveries.

Table 7: Group Loans and Advances (2): Provisions

Tables 7 and 8 are intended to assist societies in comparing their

group and society general and specific mortgage loss provisions

to industry standards. A clear feature of these tables is that there

is no consistent correlation between such general and specific

mortgage loss provisions.

The Peer Group Ratio disclosures for FSRP and FSOL are

the total Peer Group general mortgage loss provisions as a

percentage of the total Peer Group specific mortgage loss

provisions. Therefore these are not simple averages of the

individual group ratios. This is a different basis from the simple

averages as used for the general and specific FSRP and FSOL

provisions to total FSRP or FSOL loans.

Table 8: Society Loans and Advances (2): Provisions

The Peer Group Ratio disclosures for FSRP and FSOL are

the total Peer Group general mortgage loss provisions as

a percentage of the total Peer Group specific mortgage loss

provisions. Therefore these are not simple averages of the

individual society ratios: this is a different basis from the simple

averages as used for the general and specific FSRP and FSOL

provisions to total FSRP or FSOL loans.



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The information contained herein is of a general nature and is not

intended to address the circumstances of any particular individual

or entity. Although we endeavour to provide accurate and timely

information, there can be no guarantee that such information is

accurate as of the date it is received or that it will continue to be

accurate in the future. No one should act on such information

without appropriate professional advice after a thorough

examination of the particular situation.

© 2010 KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG

Europe LLP and a member firm of the KPMG network of independent

member firms affiliated with KPMG International Cooperative, a Swiss entity.

All rights reserved. Printed in the United Kingdom.

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Designed and produced by Red Door Ltd.

Publication name: Building Societies Database 2010

Publication number: RED176233

Publication date: September 2010

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Building Societies Database 2010 · 2018-04-05 · Building Societies Database 2010 4 ... Services...

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Transcript of Building Societies Database 2010 · 2018-04-05 · Building Societies Database 2010 4 ... Services...