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Kent Reliance bucks trend with rising profits

Kent Reliance building society has revealed profits rises of 121 per cent in its end of year figures.

The mutual has reported rises in profits, mortgage lending and savings.

Total Assets for the building society were up 9.6 per cent, to £2.34bn.
Profits before tax rocketed 121 per cent to £12.60m, up from 2007’s £5.71m.

The mutual’s mortgage balances were up 19.9 per cent to £1.88bn, and
retail balances rose 5.9 per cent to £1.747bn.

Kent Reliance chief executive Mike Lazenby says: “The net interest margin remains below the industry average, largely due to the lower costs of operating the business because of our back office operations, Easiprocess in India.”

Lazenby says Easiprocess also continues to provide services to a Jamaican based mutual building society and is also providing telephone support for a Sharia compliant cash card operated in conjunction with Mastercard.

Lazenby adds: “We are disappointment that we have been unable to secure a deposit taking licence on Jersey and so we are currently reviewing our strategic options for our Channel Islands operations, notwithstanding that the Channel Islands provides a beneficial impact on the Group.

“Kent Reliance believes that it continues to live out the rationale for being a building society – offering competitively priced mortgages and a safe and secure place for savings whilst contributing to the local communities in which it operates. The Society expects its offshore capability to be a critical part of the future and expects to be able to supply services to more third parties in the year to come.”


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