SWANSEA BUILDING SOCIETY enjoyed a strong increase in its total assets and a modest increase in its profits in 2016, mainly driven by the success of its newest branch in Carmarthen, which generated increased retail savings and mortgage balances during the year.
The Building Society’s annual income was £5.7m in 2016, an increase of £300,000 or 6% on its income of £5.4m a year earlier. It was boosted by increased retail savings balances across all of its branches – but Carmarthen in particular, which opened in October 2015. This helped its total assets increase by 16.2% to reach a new record level of £268.6m.
The Society also increased its net profit to just over £2m, an increase of £12,000 in comparison to 2015, despite the appointment of additional staff at its Carmarthen branch and head office, and continued investment in its IT systems.
The Building Society’s total loan book increased to £185m in 2016, an increase of £15.2m or 8.9% on the £170 million outstanding in 2015. This helped generate an operating profit before impairment losses and Financial Services Compensation Scheme (FSCS) provisions of £2.7m, which, in turn, led to increased capital, which now stands at £17.8m.
Alun Williams, Chief Executive Officer of Swansea Building Society, said he was pleased with the results and the extent to which its investment in setting up a new branch has delivered results. But he also warned that some aspects of government policy that applies to building societies continues to make life difficult for niche players that do not use the wholesale money markets for funding.
Mr Williams said: “We are delighted with another strong set of results, particularly the contribution made by our newest office in Carmarthen. Despite the significant investments we have made in staff, infrastructure and IT systems last year, we have delivered an extremely pleasing set of results.
“That said, the economic landscape remains uncertain and we still face some challenges. Contributions to the Financial Services Compensation Scheme (FSCS) continue to weigh heavily on the Society and the costs are proportionately higher than that levied on the banks due to our reliance on retail depositors rather than wholesale funding.
“Following the United Kingdom’s vote to leave the European Union, the Bank of England base rate reduced to 0.25% with effect from August 4, 2016, having been at 0.50% since March 5, 2009. Most economic forecasters expect UK Economic growth to slow in 2017 and if that is the case then the bank base rate is likely to remain at 0.25%t well into 2017, and possibly beyond.”
Mr Williams explained that the Society has also benefitted from stimulus in the form of the Funding for Lending Scheme (FLS), which has served to depress both the retail and wholesale borrowing costs of the banking and building society sectors. But he added that while the resultant low interest rate environment benefits borrowers, savers lose out and Swansea Building Society must carefully manage inflows of funds in such an environment.
“In addition to the base rate reduction, the bank announced a package of measures including a new Term Funding Scheme (TFS) of up to £10b of UK Corporate Bonds and an expansion of the asset purchase scheme for UK Government bonds of up to £435b.
Unfortunately, whilst the above will reduce the borrowing costs for households and businesses, it has led to a further reduction in savings interest rates across the UK. We remain acutely aware of the negative impact that these very low interest rates are continuing to have on our savings members.
“We kept our savings interest rates as high as we could for as long as we could during 2016.
It is a measure of how competitive our current range of savings accounts are that our savings balances increased by £35.7m (16.6%) to £250.3million of savings balances under management during the year.”
The Society’s balance sheet is 100% funded by retail and business savings and retained profits, meaning it has no reliance on the wholesale money markets to fund either asset growth or mortgage lending.
‘Knife attacker’ remanded into custody
A CARMARTHEN man accused of ‘repeatedly’ stabbing another man in Bridge Street on Friday (Dec 8) was remanded into custody until January.
Gareth George Edwards, 44, of Priory Street, indicated two guilty pleas to charges of maliciously wounding Michael Byard with the intent of causing grievous bodily harm and possessing a bladed article in a public place, namely a kitchen knife.
Representing Edwards, David Williams made no submissions at this stage.
No application for bail was made, and Edwards was remanded into custody until he appears at Swansea Crown Court on January 8.
A Dyfed-Powys Police spokesperson said: “Following an incident in Bridge St, Carmarthen on Friday afternoon, Dec 8, at around 4.30pm, three people have been charged.
“A 44 year old man has been charged with Section 18 Assault and Possession of an Offensive Weapon and is due appear at Llanelli Magistrates court today, Dec 11.
“A 50 year old man has been charged with Common Assault and bailed to appear at Llanelli Magistrates Court on Thursday, Dec 28.
“A 43 year old woman has been charged with Assault and bailed to appear at Llanelli Magistrates Court on Thursday, Dec 28.”
Snow causes school closures across county
SEVERAL snows across Carmarthenshire are closed today (Dec 11) as heavy snowfall overnight has caused hazardous conditions.
The current list of schools closed in Carmarthenshire this morning consists of:
- Brynasaron (Llangeler)
- Cae’r Felin
- Carreg Hirfaen
- Rhys Prichard Llandovery
- Talley / Talyllychau
All of the closures cite snow as the reason.
The council’s website states for Talley / Talyllychau: “The majority of staff are unable to make it in, plus the taxi service have informed us that they are unable to collect the children from the most rural areas.”
Over the weekend a weather warning was issues for the majority of the UK as snow fell and temperatures dropped.
You can check the status of your child’s school on the Carmarthenshire County Council website: http://www.carmarthenshire.gov.wales/home/residents/education-schools/emergency-school-closures#.Wi5Sokpl_IU
Christmas parcel delivered to Glangwilli Hospital
BLISS, the UK’s leading premature and sick baby charity, has donated Christmas parcels to every neonatal unit in Wales – including Glangwilli Hospital – to make sure that babies and their parents know that they are not alone this Christmas.
The Christmas gifts will arrive at the neonatal units this week and will be distributed by unit staff and volunteers.
The parcels, which also contain gifts for parents, comprise of: a Bliss teddy bear, dungarees, photo frame, children’s book, snacks and toiletries. The parcel includes additional information about the support parents can receive from Bliss. The majority of these gifts have been donated by Bliss’ corporate partners including Pampers, Mothercare, Barnack Confectionary and Mush.
Caroline Lee-Davey, Chief Executive at Bliss said: “Having a baby on the neonatal unit can be an isolating experience for parents – especially at Christmas. We hope through this small gesture, we can let parents know that they aren’t alone.
“Bliss would like to thank all of our corporate partners who helped to make this project possible. We hope that if the scheme is successful we will be able to roll the Christmas parcels out nationwide in future to reach all parents with a baby in neonatal care at Christmas.”
Head of Nursing for Children’s Services for NHS Wales Eirlys Thomas said: “On behalf of all the parents and babies we would like to thank Bliss for their kind donations. They will certainly cheer up all the parents who will need to spend Christmas in hospital with their babies.”
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