Manchester Building Society 2019 Half Year Results (4781K)

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RNS Number : 4781K

Manchester Building Society

29 August 2019

Manchester Building Society Results for the 6 months ending 30 June 2019

 
                                     Unaudited   Unaudited     Audited 
                                      6 months    6 months   12 months 
                                            to          to          to 
                                     30-Jun-19   30-Jun-18   31-Dec-18 
                                        GBP000      GBP000      GBP000 
 
 Total operating income                  3,917       4,742       8,929 
 Administrative expenses and 
  depreciation                         (2,547)     (6,132)    (10,185) 
 
 Operating profit/(loss) before 
  impairment                             1,370     (1,390)     (1,256) 
 Impairment losses                       (921)       (245)         313 
 Financial Services Compensation 
  Scheme levy                                5           6           6 
 
 Profit/(loss) for the period 
  before taxation                          454     (1,629)       (937) 
 Tax expense                                 -           -           - 
 
 Profit/(loss) for the period              454     (1,629)       (937) 
                                    ----------  ----------  ---------- 
 
 Total assets                          262,341     289,427     277,385 
 

6 months results summary:

   -      Profit of GBP0.5m compared with a GBP1.6m loss in the equivalent period in 2018. 

- Total operating income of GBP3.9m was GBP0.8m lower than in H1 2018. GBP0.4m of the reduction related to one-off benefits in 2018 whilst GBP0.4m resulted from lower balances and higher funding costs.

- Administrative expenses decreased by GBP3.6m compared with the same period in 2018. The reduction in costs was largely a result of lower fees in relation to the legal case against Grant Thornton (UK) LLP. The H1 2018 figure included GBP2.4m paid to Grant Thornton.

- Impairment losses in the period were GBP0.9m (H1 2018: GBP0.2m) owing to provision requirements within the Spanish lifetime portfolio.

   -      Total assets fell by 5% since 31 December 2018 and by 9% since 30 June 2018. 

- The accounts for the 6 month period have been prepared on a going concern basis of accounting and, in line with previous accounts, set out a "material uncertainty" regarding the long term future of the Society.

- As at 30 June 2019 the Society met its Pillar 1 plus Pillar 2A requirement, but did not meet the qualitative standards for the level of Common Equity Tier 1 ("CET 1") regulatory capital.

- Following the Society's CET 1 capital falling below the required 4.5% of Risk Weighted Assets in 2018, a medium to long term strategic plan was produced which was independently reviewed and acknowledged by the PRA who agreed to monitor the Society against it. The plan was updated in July 2019.

   -      The Society continues to have a strong liquidity position. 

- The Society continues to discuss the strategic future and capital position of the Society with the PRA.

Permanent Interest Bearing Share ("PIBS") coupon payments October 2019

On 28 March 2019 the Society announced the non-payment of the April 2019 coupon on its two tranches of PIBS. While no decision has been taken regarding the October 2019 coupon, payment is unlikely at this time. Any further non-payment of PIBS coupons will be announced to the market.

2019 Half Year Financial Information

The accounts for the 6 months ending 30 June 2019 are available to view on the Society's website:

http://manchesterbuildingsociety.co.uk/Main/FinancialInformation

Enquiries

Andy Donald - Maitland/AMO

020 7379 5151

[e-mail]

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August 29, 2019 02:00 ET (06:00 GMT)