The headline on Money Marketing's report on the recent KPMG building society review and indeed the opening sentence stating that building societies' “margins are narrowing as competitive pressures increase” could have given your readers the wrong impression.
In fact, societies actively and deliberately manage down their margins to deliver better benefits to members, which is, of course, why it pays to be with a mutual.
The Building Societies' Association confidently expects society margins to fall further in the future, benefiting their members even more, and further embarrassing their plc competitors which have to keep margins wide to pay dividends to shareholders.
External affairs manager,
Building Societies' Association,