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Solid year for Swansea Building Society as new office makes bright start

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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.

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Carmarthenshire Archives’ new building officially opened

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ON MONDAY, November 28, Cllr Rob Evans, Chair of Carmarthenshire County Council, unveiled a specially designed plaque to commemorate the official opening of the brand new Carmarthenshire Archives building.

The official opening was attended by year 6 pupils of Ysgol Y Dderwen, along with their Headteacher Mr Dylan Evans, who designed the plaque by compiling various artwork and sketches that are housed at the Archives.

Established in 1959, Carmarthenshire Archives is the local authority archive service for the County of Carmarthenshire and the new building is located at St Peter’s Street, Carmarthen. 

The service is home to our extensive collection of historic documents that date from the 13th century to the present day. The collection includes archives, maps, books, photographs, videos and sound recordings. It is the Archives’ mission to preserve and make its documents available for general study and research.

Admission to Carmarthenshire Archives is free and open to anyone who wishes to use the Council’s records. Most of its services are free, but we do charge for some extra services and help.

Speaking at the opening ceremony, Cabinet Member for Regeneration, Leisure, Culture and Tourism, Cllr Gareth John commented:

“Congratulations to the pupils of Ysgol Y Dderwen, they have designed an excellent and appropriate plaque that is inspired by the treasure troves of our archives. It was wonderful to welcome them to the official opening so that they can see their work take pride of place at a building that holds great significance to us in Carmarthenshire. 

“This is a brand new and modern building that is fit to keep and protect our county’s most precious historical documents. 

“But of course, these documents are meant to be viewed and studied by school children, students, academics and anybody who has an interest in Carmarthenshire’s rich history; and this excellent facility provides the perfect space for people to come and view these treasures.”

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Llandeilo gas works to begin say Wales & West Utilities

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WALES & West Utilities will shortly begin work to upgrade gas pipes in Llandeilo.

Wales & West Utilities has liaised with Carmarthenshire County Council to plan the work and it has been agreed that work will commence after the town has celebrated the Festival of Senses.

The £123,000 investment scheme, which is essential to keep the gas flowing safely to heat and power local homes and businesses, will begin in New Road on 21 November. This section of work will be complete before Christmas and Wales & West Utilities will return to the town next year to undertake further work in the Crescent Road area. Barring any engineering difficulties, work in the town will be complete by the end of February next year.

Wales & West Utilities Adam Smith is managing this gas pipe upgrade work. He said: “Working with the Council, we have planned this work to accommodate the needs of the town.

“While most of the gas network is underground and out of sight, it plays a central role in the daily lives of people across Llandeilo. Whether it’s heating your home, making the family dinner or having a hot bath, we understand how important it is for your gas supply to be safe and reliable and there when you need it.

“We know that working in areas like this is not ideal, but it really is essential to make sure we keep the gas flowing to homes and businesses in the area, and to make sure the gas network is fit for the future. We’ll have a team of gas engineers on site throughout the project to make sure our work is completed as safely and as quickly as possible while keeping disruption to a minimum.

“This work is essential to keep the gas flowing to local homes and businesses today, and to make sure the gas network is ready to transport hydrogen and biomethane, so we can all play our part in a green future.”

Our Customer Service Team is ready to take your call if you have any questions about our work. You can contact them on freephone 0800 912 2999.

Alternatively, you can contact us on Twitter @WWUtilities or Facebook.com/WWUtilities.

Wales & West Utilities, the gas emergency and pipeline service, brings energy to 7.5m people across the south west of England and Wales. If you smell gas, or suspect the presence of carbon monoxide, call us on 0800 111 999 straight away, and our engineers will be there to help any time of day or night. Before visiting, we’ll ask you to let us know if you or anyone in your household, is experiencing Coronavirus symptoms or self-isolating. We’ll still come and help you: but our teams will take some additional precautions to keep us all safe.

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Police appeal following theft of items from Home Bargains Crosshands

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OFFICERS from Dyfed Powys Police have confirmed that they are investigating the theft of items, including a Christmas Nutcracker Ornament valued at £129.99, from the Home Bargains store in Crosshands, Carmarthenshire.

The theft occurred at about 12:40pm on Tuesday, 27th September 2022.

Officers have carried out all possible lines of enquiry, and are now appealing for help from the public.

They would like to identify the people in the CCTV image, who may have information that could help the investigation.

Anyone who knows who the people are, or if you believe you are pictured, contact Dyfed-Powys Police.

This can also be done either online at: https://bit.ly/DPPContactOnline, by emailing 101@dyfed-powys.police.uk or phoning 101.

If you are deaf, hard of hearing, or speech impaired text the non-emergency number on 07811 311 908.

Please quote reference DPP/2006/27/09/2022/02/C

Alternatively, contact the independent charity Crimestoppers anonymously by calling 0800 555111, or visiting crimestoppers-uk.org.

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