View more on these topics

Societies at seven-year high as assets rise 15%

The UK&#39s building society sector has recorded its strongest growth in seven years with assets rising by nearly 15 per cent to £224.8bn, according to consultancy KPMG.

The growth in the sector has been driven by Nationwide, which now represents 45 per cent of the sector, with £100bn in assets in the year to April, up by 19 per cent from £85bn the previous year, which was 15 per cent up on 2002.

Market share for total mortgages outstanding with building societies remained steady at 18 per cent.

The building societies&#39 database is compiled by KPMG from a review of 63 building societies&#39 most recent financial statements from August 2003 to April 2004.

Kent Reliance was the fastest-growing society for the second year running. Its assets rose by 37 per cent to £838m in the year to April from £610m. Portman Building Society also saw its assets grow by 37 per cent, largely due to its merger with Staffordshire Build-ing Society completed in December 2003. Other strong perf- ormers were Swansea with 25 per cent asset growth, Dudley with 21 per cent, Newcastle 19 per cent and Manchester and Chelsea, both with 18 per cent.

Societies have maintained their profitability by cutting costs, with the average cost per £100 of assets reducing to 85p from 90p over the period among the top 19 societies.

KPMG financial services practice partner Richard Gabbertas says: “Growth and profitability remains strongest among the bigger societies, and Nationwide continues to be crucial to the strength of the sector as a whole.”



“Yes. They are being too hard on IFAs about this. Besides, you used to be able to do that in the past.”Arthur Temlett, Abacus Insurance Consultants “Yes. IFAs should have the option. It is a very large amount and the FSA is not being very helpful to the sector.”Bob Espie, Bob Espie & Co Financial […]

Product Matters

This year will undoubtedly be one of the bestfor venture capital trusts for some time. A whole raft of existing and new names will be seeking funds as they capitalise on the higher popularity of VCTs due to increased tax rebates for investors. The fact that many new names will be entering the market brings […]

Which? probe points finger at mortgage advisers

Which? magazine is accusing mortgage advisers of flagrant disregard for the MCCB code of practice after an undercover probe found only three out of 39 advisers gave acceptable advice. It claims that two out of three brokers failed to explain properly how mortgages could be repaid and nearly half gave misleading information. Seven of the […]

Branson&#39s pickle…

What do the Diary and entrepreneur Richard Branson have in common? We both rely on Lansons PR Liz Willder for our mobile phone solutions. Avid Diary readers may remember Liz&#39s champion effort in tracking down the Diary&#39s mobile phone aftera long night on the town and it seems even Sir Richard has taken note of […]

Global energy: positioning for a recovery in the oil price Š

Richard Hulf explains how he and John Dodd have positioned the Artemis Global Energy Fund and where they are finding opportunities. Richard explains how he and John are changing the complexion of the fund to focus on the most efficient oil producers. As he tells journalist Alexis Xydias, in this environment of lower prices, he […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm