Tag Archives: Savings

FInance, Finance and Banking, News from Wales

Swansea Building Society delivers record results

Swansea Building Society has achieved the highest growth in total assets and saving balances in its history, supported by record profits.

The Society achieved double digit growth in its total assets, mortgages, savings and capital for the fourth year running, despite the difficult economic environment.

For the year to December 31, 2024, total assets and savings both grew by 14%, while mortgages grew by 11%. Total assets increased by £86.7m to £693.7 million and savings balances increased by £81.8 million to £647.3 million, while mortgage balances grew by £52.3million to £530.1 million, driven by gross mortgage completions of £111.0 million.

The Society’s growth was supported by record profits before tax of £6.3 million, beating the previous record of £6.2 million achieved in 2023. This increased the Society’s capital reserves by 12% to £44.5 million. This is vitally important, as it provides greater reserves to support members achieve their financial goals.

The Society remains one of the few financial institutions in the UK that receives no wholesale funding or support from the Bank of England in the form of cheap funding. Its balance sheet is funded entirely by customer savings balances and its own capital reserves built up from retained profits over many years.

Alun Williams, Chief Executive of Swansea Building Society, said:

“The Society has continued to meet the needs of both savers and borrowers, while delivering another record set of results. Our record asset growth supported by record profitability has further strengthened our foundations for future sustainable growth in order that we can help more members to buy their own home or reach their financial savings goals. This has been achieved while investing in the Society to ensure it remains sustainable, scalable and relevant in the future.

“I am delighted with the dedication and care shown by my colleagues to deliver the level of service our existing and new members deserve, while through our charity and volunteering work, we have supported those people in our communities who need help the most.

“The Bank base interest rate remained at a 16-year high, at 5.25% for the majority of the year, before reducing to 4.75% as at the end of December. We are mindful that many of our customers have never experienced such a high interest rate environment and were considerate of the impact that these rates could have on both new and existing borrowers.

“The economic conditions have meant that the Society’s flexible lending policy has been in high demand, and the Society exceeded its gross lending targets for the year. At the same time, our mortgage book has shown great resilience to the high interest rate environment and other cost of living pressures with our arrears statistics remaining excellent during the year. As we head into a forecast downward interest rate curve, I hope to see these pressures subside further for our mortgage borrowers.

“One of the Society’s key aims is to help savers to reach their financial goals and to deliver sustainable returns over their long relationship with us. In December 2023, we increased our savings interest rates by 0.25% without any corresponding increase in mortgage interest rates. While this decreased our net interest margin ratio for 2024, we felt it was the right thing to do for our members and has helped to deliver record growth in savings in the year.

“The Society has a very strong internal culture that reflects our purpose of serving our customers. Our people play a vital role in the continued success of the Society and our members and professional contacts benefit from dealing with loyal, motivated, and well trained staff. Our staff have once again shown the right skills, behaviours and values that have been key to the Society’s success. Every single colleague at the Society has worked hard to provide members with our usual high standard of service, and the Society’s customer satisfaction score of 98% suggests that we have continued to be successful in doing so.

“A key element of the Society’s purpose is to be socially responsible and to make a positive difference to the local community. As a member-owned business, community is close to our hearts and we offer support not only through the products and services we provide, but also by donating our time, skills, and resources. After a three-year successful and highly rewarding partnership with Maggie’s Cancer charity, we have chosen Prostate Cymru as our Charity of the year in 2025 as we look to support the vital care the charity provides in our communities.

“In 2024 we enhanced our Environmental, Social and Governance Strategy to see how we can contribute to the Wales We Want report which was a culmination of a year-long conversation with Welsh people. The Wales we Want Report asked people to discuss the Wales that they want to leave behind for their children and grandchildren, considering the challenges, aspirations and ways to solve long-term problems to create a Wales that they want by 2050. As a Mutual that has existed for 101 years and wants to continue for another 100 years, this resonated significantly with the Society.

“The Society’s future has never been brighter. In 2024 we signed a multi-proposition contract with our IT service provider as we continue our digital transformation and embrace change by investing in our people and technology. Our members will therefore continue to see improvements in the way the Society delivers its products and services in the coming years.

“We remain fully committed to our branch network, and our objective of ‘opening and not closing branches’. We will continue to support mortgage niches which the wider mortgage market lacks the resources or knowledge to do so.

“I would like to thank all my colleagues for their contribution to a record performance in 2024, and I look forward to delivering on our plans in 2025 as we continue to look after the needs of our members and communities.”

The Society will hold its annual general meeting at the Swansea.Com stadium on Thursday 24th April 2025. Members can vote ahead of that meeting or attend the meeting in person and the Society will donate a pound to Prostate Cymru for every vote received.

Finance and Banking, Investment, Investment News, News

Fewer than a third of women feel confident about investing: HSBC UK

HSBC UK has unveiled research shedding light on the differences in financial attitudes and behaviours between men and women, particularly in the realms of saving and investing.

The study, conducted by HSBC UK, unveils concerning statistics, with two in three women (69%) admitting to lacking confidence when it comes to investing money. One in four women (27%) abstain from investing altogether due to a perceived lack of knowledge in the field.

Two in five people in the UK invest but around two thirds (67%) of women don’t invest their money, compared to 56% of men. In fact, 3.3 million fewer women hold investments in the UK compared to men – a population three times the size of Birmingham.

The main reasons include not having enough money (45%), limited knowledge on investing (27%) and thinking it is too risky (19%). Two thirds (60%) of women believe they will lose out on money if they invest.

Recognising the urgency of addressing this confidence gap, HSBC UK has launched a series of ‘inspiring money confidence’ webinars, tailored to empower women to enhance their financial wellbeing. These webinars, open to both customers and non-customers, aim to equip women with the knowledge and confidence needed to navigate the complex landscape of personal finance effectively.

Rebecca Owers, Director of Wealth Distribution at HSBC UK, underscores the importance of financial education in empowering women to seize control of their financial futures.

“Women are facing significant barriers when it comes to money. We are living longer but can earn less than our male counterparts. We take more career breaks, but we need to work an extra 19 years to retire on the same pension savings as a man.

“We need to make our money work harder, so it’s important to consider options like investing. Financial education is key here – by talking openly about money and learning the different options available, women can gain the confidence needed to take control of their financial futures.”

Business, Business News, FInance, Finance News

Milestone Success: Swansea Building Society’s Centenary Celebrated with Financial Triumph

In its 100th year, Swansea Building Society stands as a testament to success, achieving historic growth in mortgages and savings balances, complemented by record profits. The institution’s ability to attain double-digit growth in total assets, mortgages, savings, and capital, even in a challenging economic environment, underscores its financial prowess and strategic resilience.

For the fiscal year to December 31, 2023, Swansea Building Society celebrated significant financial milestones, witnessing a 15% growth in total assets fuelled by a 16% increase in savings and a 15% rise in mortgages. Total assets soared to £607 million, savings balances reached £565.5 million, and mortgage balances expanded to £477.8 million. The Society’s impressive mortgage growth was propelled by setting another record with gross mortgage completions hitting £120.1 million, surpassing the previous highest set in 2021.

The Society’s growth was supported by record profits before tax of £6.2 million, beating the previous record of £5.4 million achieved in 2022. This increased the Society’s capital reserves to £39.8 million. This is vitally important to the Society, as it provides greater reserves to support members achieve their financial goals.

The Society remains one of the few financial institutions in the UK that receives no wholesale funding or support from the Bank of England in the form of cheap funding. Its balance sheet is funded entirely by customer savings balances and its own capital reserves built up from retained profits over many years.

Alun Williams, Chief Executive of Swansea Building Society, said:

“The Society has ended its centenary year in great health, having delivered a record performance in 2023. This is despite the extremely difficult market conditions experienced during the year. I am extremely proud of how the Society has balanced the needs of borrowers and savers against a backdrop of a cost-of-living crisis, falling house prices and a rapidly increasing interest rate environment. Our 100th year has been full of activity, and I am delighted with how my colleagues have shown the level of dedication and care that our members deserve.

“The Bank of England has increased the Bank base interest rate 13 times since December 2021 as they have sought to reduce inflation. We are mindful that many of our mortgage customers have never experienced a rising interest rate market and were considerate of the impact that these dramatic increases could have on both new and existing borrowers. As a result, the Society’s weighted average interest rate paid by borrowers has increased by 2.88% at 31 December 2023, compared to the 5% increase in Bank base interest rate.

“Each time the Bank Base interest rate has changed, we have reviewed the Society’s savings interest rates to ensure that they are still highly competitive. The number of changes to the

Bank Base interest rate during 2022 and 2023 has made this task more challenging than in previous years, as the increased volatility in the savings market has made it more difficult to review the interest rates offered by other savings providers. It was therefore extremely pleasing that we were able to offer our savers such competitive rates that we achieved record savings growth.

“Producing strong sustainable financial results is just one aspect of the Society’s objectives. It is vitally important to the Society that we are also successful in terms of the quality of customer feedback and Member satisfaction. I was therefore delighted that based on customer survey feedback for 2023, 97% of respondents said they would recommend the Society to other prospective customers. This was particularly pleasing given the current economic climate.

“A key element of the Society’s purpose is to be socially responsible and to make a positive impact to the local community. We offer support not only through the products and services that we provide, but also by donating our time, skills, and resources. As 2023 was our 100th year of existence, in addition to the money raised for Maggie’s, our charity of the year, we donated an additional £100k to provide further support to local good causes in branch communities.

“To celebrate its 100 years, the Society held several events throughout the year to thank our members, introducers and suppliers for their support. It gave me great pleasure to be able to share the Society’s success with so many of our supporters across our core communities from West to East Wales.

“As we look beyond our 100th year, the Society is well placed to navigate through the challenging trading conditions caused by the current economic uncertainty. Our plans continue with the theme of digital transformation, as we embrace change by investing in our people and technology. Our members will therefore continue to see improvements in the way the Society delivers its products and services in the coming years. The increased growth and subsequent profitability of recent years has enabled the Society to make such investments, for the benefit of both current and future members.

“Our core goal of serving our customers in any way they choose remains. We will continue to support members through whichever channel is best for them, whether that is in-branch, telephone, or online. We pride ourselves on being a true mutual, with a member centric focus, providing relevant, attractive products and delivering exceptional customer service. Together with our robust financial strength, we are in a strong position to deliver on our purpose of providing members with tailored, flexible solutions.”

The Society will hold its annual general meeting at the Swansea.Com stadium on Thursday 25th April 2024. Members can vote ahead of that meeting or attend the meeting in person and the Society will donate a pound to Maggie’s cancer charity for every vote received.

News

Park Christmas Savings airs first festive TV ad of 2022

Just as families up and down the country pack away festive decorations, the UK’s first Christmas TV ad of 2022 is hitting our screens.

Too soon? No, say Liverpool-based family festive savings club Park, who are on a mission to get the UK saving now for Christmas 2022 as stress-free as possible.

In a UK TV first, Park, which is part of Appreciate Group, is airing the very first TV ad of Christmas 2022, now through to mid-February,2022 across all major channels, including ITV, Channel 4 and Sky.

The ad campaign, created by Manchester’s TBWA creative agency, is called “Sorry Not Sorry” and the 30-second commercial humorously plays on just how crackers it is to mention Christmas 2022 so soon.

However, Park says there is no time like the present to start putting money aside and plan for the perfect Christmas 2022.

In a recent YouGov study from Park most UK adults who do save ahead for Christmas start in January and the result is less stress, more joy, with almost 40 percent UK adults revealing that saving ahead boosts their wellbeing.

Hundreds of thousands of UK families presently budget with Park each year by paying for Christmas in advance by spreading payments throughout the year.

Sign-up season starts each January and for 2022, Park is on a mission to get the nation taking the strain out of Christmas expenditure by getting a head start – no apologies.

Katherine Scott, director of marketing at Park Christmas Savings added: “Most people might think it’s a bit early to mention Christmas 2022 but for Park Christmas Savings the festive season never stops.

“The key message of our TV ad is that by getting a head start and putting away an affordable amount of money weekly or monthly now, paying for Christmas 2022 need not be a burden.”

Check out the TV ad here: https://youtu.be/O2EwFnkuUDY

To find out more about the Sorry Not Sorry campaign and planning for Christmas 2022, go to Park Christmas Savings: https://christmas.getpark.co.uk/sorrynotsorry/
News

Industry first as OneFamily welcomes The Share Centre’s LISA customers

OneFamily has announced a deal with interactive investor that will see the Brighton-based mutual welcoming The Share Centre’s 1,500 Lifetime ISA customers to its books in what is thought to be the first transfer of its kind in the industry.

The transfer of accounts, which will come into effect on 3 July 2021, follows interactive investor’s acquisition of The Share Centre’s business in July last year. Interactive investor does not offer lifetime ISAs and sought a provider to take on this area of the business.  It comes in the wake of The Share Centre’s recent transfer of 83,000 child trust fund customers to OneFamily, which is a market leader in child tax efficient investments.

A lifetime ISA is designed to build savings for a first home or retirement.  Savers can invest up to £4,000 each year and receive a 25% tax free government bonus of up to £1,000 annually.  OneFamily’s stocks and shares-based Lifetime ISA invests in forward-thinking climate-friendly companies that are committed to reducing their impact on the environment.

Paul Bridgwater, OneFamily’s Head of Investments said, “We’re pleased to have been chosen by interactive investor as the new home for The Share Centre’s Lifetime ISAs in the industry’s first ever bulk transfer of lifetime ISA accounts.  We’ve a strong heritage of partnering with other organisations to support investment propositions and are always looking for opportunities to help partners in this area.

“As we welcome our new customers, we’re going to let them know that we’re here to support them as they plan for their futures – whether that’s in saving for their first home or for their retirement.  The added bonus in switching to OneFamily is that as they continue to build up their savings with us, they are also going to be looking after the planet.”

Richard Wilson, CEO of interactive investor, said, ““We believe we have found a good home for Share Centre LISA accounts, and customers will be best served by a specialist provider. Those who want to transfer to a different provider can do so without penalty.

“The transfer will allow us to continue to focus on enhancing our core offerings. We remain concentrated on building a best-in-class customer experience, that is unrivalled in value and a trusted source of impartial information.”

To find out more about OneFamily’s Lifetime ISA, visit www.onefamily.com/lifetime-isa/

News, Property News

Buyers take advantage of stamp duty savings on new homes in Rugby

Homebuyers in Rugby can save on the cost of moving thanks to stamp duty relief which is currently in place.

Bellway is building a range of new properties at Houlton Meadows and has seen increasing demand from home-hunters looking to move before 31 March this year.

Buyers can capitalise on stamp duty relief at Houlton Meadows with the four-bedroom detached Walnut house, which is priced at £378,000, meaning savings of £8,900.

The Walnut is a 4-bedroom home that features an open-plan kitchen, dining and family area, a separate living room, an en suite to bedroom 1 and a contemporary family bathroom.

Elaine Brown, Head of Sales for Bellway South Midlands, said: “There is something for everyone at Houlton Meadows, with homes for sale in varying sizes, for people with a range of budgets.

“This is a great time to buy a new home in Rugby with the opportunity for big savings on stamp duty for those able to complete by 31 March.

Buyers can also get a feel for the development by visiting the Bellway website where we have videos of the Aspen and the Worcester house types available.

Bellway is delivering 380 new homes at Houlton Meadows, with current releases including three- and four-bedroom homes starting from £276,000.

Construction at the site, located off Crick Road, started in 2019.

Elaine said: “Houlton Meadows is an exciting new development of homes in Rugby that is creating a vibrant residential community with a village-feel.

“The development is appealing to a wide variety of buyers, from families to first-time-buyers and professionals looking for extra space, and the current stamp duty savings make purchasing a new Bellway home even more affordable.”

For more information about Houlton Meadows, visit bellway.co.uk or call the sales team on 01788 851452.