Costa Del Loss for Manchester Building Society
MANCHESTER Building Society has reported a full-year loss after increasing its provisions for bad loans.
The society said it was adopting a “more prudent view” of the Spanish economy where it holds some mortgage assets, and because of the performance of a third party mortgage book in which it has an interest.
MBS, which is based in the city centre, reported total income of £15m in the year to the end of December, up from £11.3m.
It made a pre-tax profit of £7.6m, up from a £1.9m loss, but impairment losses increased from £900,000 to £8.7m, leaving it with a full-year loss of £1.6m.
Chairman David Harding said: “The society’s principal business performed ahead of plan against the backdrop of continued low interest rates.
“We have taken a prudent decision to increase impairment provisions in respect of certain mortgage assets which has resulted in a loss for the year.
“We have undertaken a thorough review to ensure that all legacy issues have been addressed, so that we can focus on the future development of the Society. We look forward to continuing to support our members with high quality mortgage and savings products.”
MBS is the UK’s 19th largest building society with 22,000 savers and and 3,750 borrowers.
