Manchester Building Society Half year results (3568P)
31 Agosto 2017 - 1:00AM
UK Regulatory
TIDMMBSR TIDMMBSP
RNS Number : 3568P
Manchester Building Society
31 August 2017
Manchester Building Society Results for the 6 months ending 30
June 2017
Unaudited Unaudited Audited
6 months 6 months 12 months
to to to 31
30 June 30 June December
2017 2016 2016
GBP000
GBP000 GBP000
Total operating income 4,817 4,525 9,210
Administrative expenses
and depreciation (3,695) (4,387) (8,663)
---------- ---------- -----------
Operating profit before
impairment 1,122 138 547
Impairment losses (1,718) (1,430) (3,448)
Financial Services Compensation
Scheme levy (102) (108) (67)
---------- ---------- -----------
Loss for the period
before taxation (698) (1,400) (2,968)
Tax expense - - (382)
---------- ---------- -----------
Loss for the period (698) (1,400) (3,350)
---------- ---------- -----------
Total assets 336,310 379,697 382,304
6 months results summary:
- The increase in total operating income arose from the release
of a GBP0.3m interest provision relating to remediation work being
undertaken on the Society's second charge book, which is now
largely complete.
- Administrative expenses reduced in the first half of 2017, as
a result of lower levels of legal, professional and consultancy
expenditure.
- Impairment losses in the period were GBP1.7m, which related in
the main to an increase in the insurance risk on the Spanish loan
book, mainly associated with lower growth rates included in an
updated forecast of Spanish house price inflation.
- The Society's reserves fell by GBP0.7m as a result of the
overall loss reported for the period.
- The accounts for the 6 month period have been prepared on a
going concern basis of accounting and, in line with the 2016 year
end accounts, set out a "material uncertainty" regarding the long
term future of the Society.
- As at 30 June 2017 the Society met its Individual Capital
Guidance ("ICG") in total capital terms, but will not meet the
qualitative standards for the level of CET1 regulatory capital.
Under CRD IV article 142, a Capital Conservation Plan was submitted
to the PRA in October 2016, with an update in April 2017. These
documents have been discussed with the PRA and they continue an
open dialogue with the Society on future developments.
- The Society continues to have a strong liquidity position.
Permanent Interest Bearing Share ("PIBS") coupon payments
October 2017
- On 14 March 2017, the Society announced that there was
uncertainty over its ability to make coupon payments on its two
tranches of PIBS after April 2017 given the risks facing the
business, which were explained in the Society's 2016 Annual Report
& Accounts. This uncertainty continues and whilst no decision
has been taken regarding the October 2017 coupon payments
presently, its payment is unlikely at this time.
- Any further non-payment of PIBS coupons will be announced to the market.
2017 Half Year Financial Information
The accounts for the 6 months ending 30 June 2017 are available
to view on the Society's website:
http://manchesterbuildingsociety.co.uk/Main/FinancialInformation
Enquiries
Andy Donald - Maitland
020 7379 5151
adonald@maitland.co.uk
This information is provided by RNS
The company news service from the London Stock Exchange
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