Interim Results
September 27 2006 - 5:29AM
UK Regulatory
RNS Number:5385J
Principality Building Society
27 September 2006
27 September 2006
PRINCIPALITY DELIVERS SOLID RESULTS
Unaudited interim results for six months to 30 June 2006
Principality, Wales's largest building society, today issued results which
reflect a strong performance for the first half of 2006.
Year-on-year highlights:
* Group assets grew by 9.86%, exceeding #4.65 billion (June 2005 - #4.2
billion)
* Group profit before tax increased by 13% to #11.0 million (June 2005 -
#9.7 million)
* Group mortgage balances grew to #3,742.6 million (June 2005 - #3,396.1
million)
* Mortgage advances grew by 39% to #623.1million (June 2005 - #446.7million)
* Savings up by #187 million to #3.3 billion
* Winner of Employer of the Year for Wales and the West Country.
Commenting on the results, Peter Griffiths, Chief Executive of Principality
Building Society, said: "We have delivered a good set of results for the first
half of 2006 and are on course to hit our targets for the year. Group assets
have increased to over #4.65 billion and pre-tax profits are up by 13% to #11.0
million. The steady housing market and a competitive range of mortgage products
have also ensured a growth in mortgage advances to #623.1 million - an increase
of 39%. Our savings book is also strong and has hit #3.3 billion.
"Principality's subsidiaries have performed ahead of plan. Nemo Personal Finance
Ltd, a personal secured loans business, now employs 140 staff in Cardiff and is
continuing to deliver good returns. Peter Alan estate agency broke all records
with an outstanding first half to the year and the commercial lending division
broke through the #600m lending barrier in June.
"Our newest subsidiary, Moneypilot.co.uk, launched in June. This is an example
of how we are using technology in an innovative way to enable customers to
access advice about the whole of the mortgage market via web and phone from the
comfort of their own home or office. We are aiming to develop this proposition
further later this year to offer pensions and investment advice.
"As our subsidiaries prosper, the profit generated enables us to build a more
sustainable business and provide real member value to our core building society
customers. We continue to look for other opportunities to invest in new
businesses to offer a wider range of products and services for our members.
"Earlier this summer we raised #120 million in capital to support the group's
growth plans over the medium term. The deal has extended our footprint in the
capital markets - a total of 24 investors participated in the transaction, of
whom 20 were new to Principality. Our credit story was well received by the
London and Edinburgh based investors - reflecting our strong Welsh franchise and
robust 2005 performance.
"The building society is continuing to widen its presence in Wales. We are
investing on the high streets of Wales and the borders and have relocated two of
our branches to more prominent locations in Neath and Mold. We also announced a
new sponsorship deal with the Football Association of Wales in August and now
sponsor the Welsh Football Premier League. This is in addition to our
sponsorship of the rugby premiership in Wales which associates us with a sport
which is at the heart of many Welsh communities.
"We are also developing our services, to extend beyond our traditional branch
network, via the web. We launched a bilingual online mortgage application
facility earlier in the year and we will be building our e-commerce capability
and bringing online savings accounts to customers in early 2007.
"Our AGM in March was well attended and a record 16% of our members voted
helping us to raise #35,000 for our elected charity of the year, Breast Cancer
Care Cymru/Wales. We have also strengthened the Board of Directors and David
Williams, previously Deputy Chairman, has been appointed Chairman of the
Society."
Peter Griffiths added: "We continue to invest in the development of our staff
and are proud to have won the Employer of the Year award for Wales and the West
Country. We also received the Bilingual Business of the Year award for our
commitment to the Welsh language. We move into the second half of the year
encouraged by the progress made by the Society. We will sustain our focus on
providing first class service to our customers and maintaining our position as
the leading Welsh provider of mortgages and savings."
The half year results are prepared under International Financial Reporting
Standards, effective from 1 January 2005.
Ends
Notes to editors
* Financial information follows below.
* Formed in 1860, Principality is Wales's largest building society.
* The Society is committed to supporting the communities of Wales.
* With more branches in Wales than any other building society, Principality
is the 12th largest building society in the UK.
* The Society has assets of over #4.6 billion.
* Principality is committed to remaining a mutual organisation.
* Peter Alan is Principality's wholly owned estate agent subsidiary with 25
branches throughout South Wales.
* Late in 2004, the Society acquired Loan Link Limited and formed a new
subsidiary - Nemo Personal Finance - creating around 160 jobs in Wales over
two years.
For more information, contact:
Llio Penri, PR Officer, Principality Building Society.
Tel: 029 2077 3208; Mob: 07836 713343; email: lpenri@principality.co.uk
Principality Building Society
Group interim results for six months to 30 June 2006
6 months to 6 months to Year to
30.06.06 30.06.05 31.12.05
(Unaudited) (Unaudited)
#m #m #m
Results for the period
Net interest income 30.1 24.1 53.0
Other income and charges 14.9 10.1 23.4
Unrealised fair value gains and losses 0.2 0.3 0.3
Administrative expenses (31.2) (24.3) (52.1)
Impairment losses on loans and advances (3.0) (0.5) (2.0)
Profit before tax 11.0 9.7 22.6
Taxation (3.4) (2.9) (7.0)
Profit for the period 7.6 6.8 15.6
Financial position at the end of the period
Assets
Liquid assets 860.1 780.6 803.6
Mortgages 3,742.6 3,396.1 3,515.0
Derivative financial instruments 7.7 7.5 8.0
Fair value adjustment for hedged risk on mortgages (1.6) 10.3 7.2
Fixed assets and other assets 48.6 44.8 50.5
Total assets 4,657.4 4,239.3 4,384.3
Liabilities
Shares 3,312.9 3,125.7 3,223.9
Borrowings 887.8 779.9 814.8
Derivative financial instruments 1.7 10.2 6.7
Fair value adjustment for hedged risk 2.3 6.1 6.7
Other liabilities 31.5 33.5 36.5
Subordinated debt 119.1 - -
Subscribed capital 58.8 58.7 58.7
Reserves 243.3 225.2 237.0
Total liabilities 4,657.4 4,239.3 4,384.3
Group interim results for six months to 30 June 2006 - continued
6 months to 6 months to Year to
30.06.06 30.06.05 31.12.05
(Unaudited) (Unaudited)
#m #m #m
Statement of recognised income and expense
Profit for the period 7.6 6.8 15.6
Recognition of adoption of IAS 32 and IAS 39 - 6.3 6.3
(Loss)/gains on revaluation of available-for-sale investments (1.3) 1.0 0.5
Actuarial gain on retirement benefit obligation - - 5.0
Movement in deferred tax relating to retirement benefit obligations - - (1.5)
Total recognised income for the period 6.3 14.1 25.9
Cash Flow Statement
Cash flows from operating activities (107.5) 18.1 43.5
Cash flows from investing activities (11.8) (10.1) (35.8)
Cash flows from financing activities 119.1 - -
Net increase / (decrease) in cash (0.2) 8.0 7.7
Cash or cash equivalents at the start of the period 52.3 44.6 44.6
Cash or cash equivalents at the end of the period 52.0 52.6 52.3
Key Results & Ratios
Mortgage advances # 623.1m # 446.7m # 965.6m
Movement in share balances # 89.0m # 113.7m # 211.9m
Gross capital as a percentage of shares
and borrowings 10.0% 7.2% 7.3%
Liquid assets as a percentage of shares
and borrowings 20.5% 20.0% 19.9%
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR KDLBLQKBFBBV
Kuwait Proj. 26 (LSE:89VX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Kuwait Proj. 26 (LSE:89VX)
Historical Stock Chart
From Jul 2023 to Jul 2024
