Lender’s future in doubt

Lender's future in doubt

A lender has expressed concerns about its future.

In a statement saying that it is finalising its accounts for the year ending 31st December 2015, Manchester Building Society said: “The directors expect the accounts to refer to a material uncertainty surrounding the long-term future of the society given the continuing decline in the scale of operations.”

The building society has not been active in the lending market since 2013 and said it has no plans to re-enter the mortgage market in the immediate future. 

It also said that its mortgage assets have fallen by about 40% over the last three years, although its liquidity position “remains strong”. 

The statement continued: “The directors will be giving further consideration to the future strategy of the society over the coming months,” it continued. 

In its previous half year results announced last August, Manchester Building Society reported total income of £5.9m which was up from £5.7m in the previous year while profit after tax had grown to £2.1m from £0.6m.

The results were boosted by the sale of its shareholding in New Life Home Finance in April 2015.

However, in its 2014 full year results, Manchester Building Society reported that net interest income had fallen to £11.1m from £15m following the disposal of its £68m UK Lifetime Book. 

Manchester Building Society’s full results for 2015 are due to be released before the end of March. 

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