Interim Results

RNS Number:0089H
Portman Building Society
01 August 2006


PRESS RELEASE

For Immediate Release


1 August 2006



                     PORTMAN ANNOUNCES 2006 INTERIM RESULTS

Portman Building Society, the UK's 3rd largest building society, today issued
its interim results for the six months ended 30 June 2006. These excellent
results show that the Society has again delivered record financial performance
whilst announcing a further merger, with Lambeth Building Society.


KEY HIGHLIGHTS

  * Total assets increased 5% to #18.7bn;
  * Savings balances increased 6% to #12.0bn with net inflows of #439m,
    compared with a net outflow in the first half of 2005;
  * New residential mortgage lending written of #2.3bn, an increase of 27%
    year on year;
  * Profit before tax increased by 13% to #44.5m; and
  * Proposed merger with Lambeth Building Society announced.


Commenting on the results, Robert Sharpe, Chief Executive of Portman said:

"I am delighted that, once again, Portman has achieved an excellent set of
results, both in terms of profitability and growth. Our determination to deliver
the right products to both savers and borrowers has again been highlighted, with
new business volumes exceeding our natural market share in both of these
sectors. This continuing success was instrumental in convincing the Board of
Lambeth Building Society that the interests of their members would be best
served by joining such a Society with Portman's strength, a view endorsed by the
Lambeth's members, who overwhelmingly approved the merger of the two societies
in May (see note to editors). Despite some uncertainties in respect of the
economy, the prospects for the housing market remain sound, and against this
background we expect another strong performance in the second half of the year."
Sharpe concluded.

                                     -ENDS-

Editors' notes:

*   The Interim Results, prepared under International Financial Reporting
    Standards, accompany this press release. To view, please click or copy the
    following link into your web browser

    http://www.rns-pdf.londonstockexchange.com/rns/0089h_-2006-7-31.pdf


    * Portman Group consists of:

      i.  Portman Building Society is the third largest UK building society 
          and 13th largest UK mortgage lender.

          In the six years since 2000, Portman has more than doubled in size.  
          During this period Portman was the fastest growing top ten building 
          society in terms of total assets.

          The Group has total assets of #18.7 billion and employs over 2,700 
          staff, serving 1.7 million members.

          The Society has a network of 144 branches.  Its Head Office is in 
          Bournemouth, Dorset and it has an administration centre based in the 
          West Midlands.


    ii.   The Mortgage Works is a specialist mortgage lender which has been 
          operating in the UK mortgage market for the last 16 years.  Its 
          product range, available through brokers, includes self-certification,
          buy-to-let and adverse credit.


   iii.   Portman Channel Islands Ltd is based in the Bailiwick of Guernsey and,
          as the offshore deposit taking subsidiary of Portman Building Society,
          offers a safe home for its investors' money together with friendly and
          efficient service.

*   Lambeth Building Society merger: on 25 May 2006, Lambeth Building Society 
    savers and borrowers overwhelmingly approved the merger of the Lambeth and 
    Portman Building Societies at the Lambeth's AGM. Subject to confirmation by
    the FSA, the effective date for the merger is expected to be 30 September 
    2006.

Further comment from the Society's Executive Team on the interim results can be
arranged by contacting the Press Office. A selection of photographs is also
available.

Readers requiring further information about any of the products or services
offered by the Portman Group should visit their local branch of Portman or
call 0845 60 90 600 for details. Information can also be found by logging onto
www.portman.co.uk


For further information please contact:

Lynsey Hallam
Press Officer
01202 562256
07887 830000


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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