4. Progress in 2012 – Income & Expenditure - The underlying financial
performance of the Society has been strong. Management expenses remain the
lowest in peer group with productivity improvements containing costs.
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2012 2011
£000s £000s
Income
Net Interest Receivable 1,514 1,549
Other Income 93 73
Total Income £1,607 £1,622
Costs
Management Expenses (including
depreciation) 1,250 1,190
Mortgage Provision (5) 201
FSCS levies 101 50
Total Costs £1,346 £1,441
Net Profit before tax 261 195
Tax (55) (43)
Net Profit £206 £152
5. Progress in 2012 – Balance Sheet – Strong balance sheet with growth in the year
of 3.36%. Record year for Prime Residential lending resulting in growth in total
mortgage balances of 7.25%. Adequate capital to underpin growth going forward.
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2012 2011
£000s £000s £000s £000s
Assets
Liquid assets 47,813 50,891
Mortgage balances 131,280 122,411
Less: Provisions (1,043) 130,237 (1,143) 121,268
Fixed assets 1,121 1,226
Other assets 307 266
Total Assets £179,478 £173,651
Liabilities
Shares and Deposits 164,641 161,570
Owed to credit institutions 2,508 167,149 0 161,570
Other liabilities 439 399
FSCS provision 151 102
Subordinated debt 2,750 2,750
Revaluation reserve 487 540
General reserve 8,502 8,290
Total Liabilities £179,478 £173,651
6. 23/04/2013 6
Stuart Young
Chairman
• Chairman’s Statement
• Receive the Annual Report and Accounts and Auditors
Report
• To consider, and if thought fit, pass an Ordinary
Resolution to appoint KPMG LLP as auditors until the
conclusion of the next Annual General Meeting
7. 23/04/2013 7
Stuart Young
Chairman
• To consider the following Ordinary Resolutions for the
election of directors:
• 4 (a) To re-elect Michael Anthony WILMOT
• 4 (b) To re-elect Brian YOUNG
• 4 (c) To re-elect Richard Michael MILES
• 4 (d) To re-elect Stuart Leslie YOUNG
• 4 (e) To elect Michael Richard HEENAN
10. Vision
To be a strong independent mutual, that is
trusted and respected by members and non-
members, because we offer straightforward,
value for money products, that are easy to
understand, and are supported by an
unrivalled level of personal service.
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11. Strategy
• As an independent Building Society we will provide a safe and
trusted place for members to save.
• These savings will be used to provide residential mortgages,
so that members can buy a house, or improve their existing
home.
• Our strategy will be underpinned by an unrivalled level of
personal service.
• Bonuses will be not be paid to any staff
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12. How the Society Works
• Capital
• Savers
• Mortgagees
23/04/2013 12
13. How the Society Works
The Society has 3 main components to its business:-
2. Saver Members (Lend money to the Society)
3. Mortgage Members (Borrow money from the Society)
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1. Capital (Money for a ‘rainy day’)
14. How the Society Works
Capital (Money for a ‘rainy day’)
• A minimum amount of money and assets must be set aside
• These are to cover unexpected events
• The Society has £8.5m in Reserves
• All of the Society’s net profits are used to increase Reserves
• We have no shareholders to pay
• We do not pay bonuses to staff
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15. How the Society Works
Saver Members (Lend money to the Society)
• Members who deposit their savings with the Society are
‘lending’ their money
• In return the Society pays these members interest
• The Society offers straightforward products and avoids
confusing ‘special offers’
• We always try to be as competitive as possible
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16. How the Society Works
Mortgage Members (Borrow money from the Society)
• The Society uses the money from savers to lend via mortgages
• Borrowing members take out mortgages to buy homes
• In return they pay interest to the Society
• This money is used to:-
– Pay interest to savers
– Cover the running costs of the Society
• Any spare money is profit and this is used to increase capital
• Capital must increase by a minimum amount each year in order to
assure the long term future of the Society
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17. How the Society Works
Challenges
• The market is very competitive
• The government has increased competition in the mortgage
market leading to reduced rates
• This reduces the rates that can be paid to savers
• Financial institutions are being told to hold more capital
• This means the Society must make more profit
• The need to make more profit effects the rates that can be
paid to Savers
The good news……….
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18. How the Society Works
Good News
• Your money is safe with the Beverley Building Society
• We are completely independent which means that
£85,000 of every members savings (so £170,000 for joint
accounts) are guaranteed by the Government
• We promise that we will always offer consistently
competitive rates
• We take a conservative approach
• We don’t pay bonuses
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