Final Results

    RNS Number : 2291X
  Scarborough Building Society
  23 June 2008
   
    Monday 23 June 2008


    SCARBOROUGH ANNOUNCES STRONG ANNUAL RESULTS


    The Scarborough Building Society Group today announced a record set of annual results.

    Highlights of the year included:-

    *     Group pre-tax profit up 16% to £7.8 million;
    *     Total assets under management up 20% to £5.2 billion.
    *     Group total assets up 24% to a record £2.85 billion;
    *     Group management expenses ratio reduced to 0.74%;
    *     Society management expenses ratio down again to 0.37%;
    *     Group mortgage balances up 57% to £2.2 billion;
    *     Group retail deposit balances up 11% to £2.1 billion;
    *     97% of mortgages funded by retail deposits.

    Outlining Scarborough's performance for the 2007/8 financial year, today, Chief Executive John Carrier said: 'Despite hugely competitive
and complex times, our pre-tax profit and asset growth have, once again, increased significantly.

    'We are a mutual building society with a diverse business model and a responsible approach to risk management. As a result, we have no
exposure to the US sub prime lending crisis through collateralised debt obligations and structured investment vehicles.

    'Our success in growing retail balances means that almost 100% of our lending is now  funded by savings deposits.

    'In addition, our strong liquidity and capital positions ensure continuing security for our members during an emerging period of
uncertainty for the financial services sector and indeed the UK economy as a whole. 

    'I expect this environment to result in further increases in the cost of borrowing and a slowdown in the housing market affecting
property values, factors which could well impact on our financial performance next year.

    'However, Scarborough has always met its challenges head-on and, equally, sees them as opportunities through which it can make progress
as it follows the clarity of its strategic direction.

    'We remain committed to our core purpose of offering good value mortgages and savings, and delivering continuing success for the benefit
of our members despite what is likely to be a tough operating environment 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 2008
    SUMMARY


                                 2008     2007
                                    £m      £m
 INCOME STATEMENT
 Net Interest Receivable          18.7    16.1
 Other Income and Charges          9.4     6.6
                                  28.1    22.7

 Administrative Expenses        (19.0)  (15.6)
 Provisions                      (1.3)   (0.3)
                                  ____    ____
 Profit before Taxation            7.8     6.8

 Taxation                        (1.4)   (2.0)
                                  ____    ____
 Profit for the Financial Year     6.4     4.8
 BALANCE SHEET
 Liquid Assets                     597     845
 Mortgages                       2,193   1,401
 Fixed and Other Assets             62      52
 Total Assets                    2,852   2,298
 Shares and Borrowings           2,653   2,115
 Other Liabilities                  46      28
 Subordinated Liabilities           30      35
 Subscribed Capital                 65      65
 Reserves                           58      55
 Total Liabilities               2,852   2,298



    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 £5.2 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), our mortgage trading
arm, 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 residential and buy-to-let. 
    *     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.



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