Final Results

RNS Number:9112Y
Scarborough Building Society
25 June 2007


Monday 25 June 2007

SCARBOROUGH ANNOUNCES RECORD RESULTS

The Scarborough Building Society Group today announced an outstanding set of
annual results.

Highlights of the year included:-

*    Group pre-tax profit up 20% to #6.8 million
*    Group total assets up 33%, to a record #2.3 billion
*    Society management expenses ratio down again, to 0.52%
*    Group mortgage balances up 4% to #1.4 billion
*    Members' savings balances up 8% to #1.3 billion
*    Total assets under management up 41% to #4.3 billion

Outlining Scarborough's performance for the 2006/07 financial year, today,
Chief Executive John Carrier explained that behind these results, key
achievements were:-

*    Further diversifying the business by acquiring a new offshore
     retail deposit-taking subsidiary, Scarborough Channel Islands Limited 
     (SCIL).

*    Launching a new non-conforming lending arm, Scarborough Specialist 
     Mortgages (SSM), enabling the Group to cater for the full market
     spectrum of customers.

*    Producing innovative, long term good value products to meet changing social 
     needs, including a dedicated Christmas Saver account giving people a 
     regulated alternative to hamper clubs following the Farepak collapse.

*    Obtaining a first investment grade credit rating for the Group from
     Moody's of A3.

*    Securing primary and special servicer ratings of 2- and 3+ from independent 
     ratings agency Fitch for our mortgage administration subsidiary, 
     Scarborough Mortgage Services (SMS).

*    Accelerating the growth of the Group by taking on major new mortgage 
     administration clients for SMS and completing transactions totalling #2.3 
     billion through mortgage trading subsidiary North Yorkshire Mortgages 
     (NYM).

*    Creating a refreshed Corporate Social Responsibility (CSR) policy which 
     outlines our commitment to members and the communities in which they live, 
     giving 1% of pre-tax profit to good causes.

*    Replacing our Legacy mainframe system with new Microsoft SQL Servers, 
     giving the Group access to the Microsoft .Net environment, to improve
     the efficiency and future scalability of our systems.

*    Launching a flagship new branch in Scarborough and planning to relocate to 
     a new state-of-the-art branch in Leeds.

John said, 'This has been a year of unprecedented growth and development for
the Scarborough Building Society Group, thanks to a clear business strategy
based on our integrated model of complementary businesses.

'We have achieved a successful balance between the focus needed to deliver on
our plan, and the ability to seize opportunities which enhance our Group
business, whilst responding to changing consumer and social trends by bringing
new and innovative products to market.

'All of this activity has enabled us to fulfil our core purpose of creating
profitability to invest in and sustain our business in order to return value to
our members through rewarding savings products and value-for-money mortgages.'

As for the future, John added that Scarborough has ambitious plans to ensure
the positive trend continues throughout the year ahead.

'Rising interest rates will create some uncertainty for the housing market and
competition will continue to reduce operating margins,' he said.

'However, these challenges bring opportunities for the Scarborough Group, and
we look forward to taking advantage of them in the year ahead.'


NOTES FOR EDITORS: For further information, or to arrange interviews, please
contact Press and Public Relations Manager, Tracy Fletcher, on [phone],
mobile: [phone] or email [e-mail].



SCARBOROUGH BUILDING SOCIETY GROUP
FINANCIAL RESULTS FOR THE YEAR ENDED 30 APRIL 2007
SUMMARY

                                                           2007           2006
                                                             #m             #m
INCOME STATEMENT
Net Interest Receivable                                    16.1           16.2
Other Income and Charges                                    6.6            5.0
                                                           ____           ____
                                                           22.7           21.2


Administrative Expenses                                   (15.6)         (15.6)
Provisions                                                 (0.3)             -
                                                           ____           ____
Profit before Taxation                                      6.8            5.6

Taxation                                                   (2.0)          (1.7)
                                                           ____            ___
Profit for the Financial Year                               4.8            3.9
                                                           ____            ___

BALANCE SHEET
Liquid Assets                                               845            358
Mortgages                                                 1,401          1,346
Fixed and Other Assets                                       52             29
                                                          _____          _____
Total Assets                                              2,298          1,733
                                                          _____          _____


Shares and Borrowings                                     2,115          1,609
Other Liabilities                                            28             22
Subordinated Liabilities                                     35             35
Subscribed Capital                                           65             15
Reserves                                                     55             52
                                                          _____          _____
Total Liabilities                                         2,298          1,733
                                                          _____          _____


BACKGROUND INFORMATION - SCARBOROUGH BUILDING SOCIETY

*    SBS is a successful UK building society, operating throughout the UK, as 
     well as through its offshore subsidiary, based in Guernsey.

*    With Group assets under management of over #4 billion and a Moody's 
     investment grade credit rating, SBS is a financially secure top 20 building 
     society, with interests across a broad range of financial services
     businesses.

*    The SBS Group is made up of Scarborough Building Society; Scarborough 
     Mortgage Services (SMS), which administers mortgages for several
     international investment banks and other UK financial services businesses;
     North Yorkshire Mortgages (NYM), the asset origination and trading arm;
     Scarborough Specialist Mortgages (SSM), our new brand offering 
     non-conforming and buy-to-let home loans, and our offshore deposit-taking 
     subsidiary, Scarborough Channel Islands Limited (SCIL).

*    The Group also operates through a national network of mortgage 
     intermediaries, offering products to a wide range of market segments;
     including prime residential, buy-to-let (including student and holiday 
     let), self-certification and adverse credit.

*    We are committed to actively supporting our local communities by delivering 
     a Corporate Social Responsibility policy encompassing cash sponsorship, 
     staff volunteering, environmentally friendly practices and investment in 
     our people.

*    We believe in leading by example and being different through our 
     professionalism, innovative products, systems and infrastructure, and the
     way we do business.

*    An Investor in People with an achievement culture, we strive to be an 
     employer of choice by offering fair pay, opportunities for training and 
     career development, recognition for outstanding performance and attractive
     benefits.




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