BSA: Record half year savings for societies
Building Societies Association logo for press releases
Tuesday, 29, Jul 2008 12:00
Building societies’ excellent performance in the savings market for the first half of 2008 saw them achieving record savings inflows of £6,296 million compared to just £3,862 million in the first six months of 2007.
Savers have been taking advantage of the excellent interest rates and products that societies offer, viewing them as tried and trusted compared to other, more volatile, investment opportunities.
Commenting on the figure, Adrian Coles, Director General of the BSA commented:-
“With an uncertain economic outlook and stock market turbulence, savers are wisely viewing building societies as excellent homes for their money. The excellent products and trusted brand names of building societies mean that savers know that societies are the place for their savings when times are uncertain.”
Turning to the mortgage market, Mr. Coles said:-
“Net lending for societies was down from £8,429 million in the first six months of 2007 to £3,448 million in the equivalent period of 2008. It is no surprise that the lending figures for societies are so low. This reflects the depressed state of the housing market.
“Many societies have chosen to follow a conservative lending policy to ensure that they maintain the high quality of their loan books.”
Building Society Statistics June 2008
Building societies had net receipts of £419 million in June 2008 compared with £576 million in June 2007.
Building society net receipts to cash ISAs in June 2008 were provisionally estimated £74 million compared with £309 million in June 2007.
Building society gross lending amounted to £2,985 million in June 2008 compared with £4,653 million in June 2007.
Net lending by building societies in June 2008 was -£526 million compared to £1,320 million in June 2007.
Approvals in June 2008 were £2,590 million compared with £4,068 million in June 2007.
~ Ends ~
Notes to Editor:
1. The Building Societies Association (BSA) represents all 59 building societies in the United Kingdom. Building societies have total assets of over £360 billion and, together with their subsidiaries, hold residential mortgages of £250 billion, more than 20% of the total outstanding in the UK. Societies hold about £230 billion of retail deposits, accounting for more than 20% of all such deposits in the UK. Building societies also account for about 38% of all cash ISA balances. Building societies employ over 51,500 full and part-time staff and operate through more than 2,000 branches.
2. Photographs of Adrian Coles are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
3. Detailed statistical information can be found on the accompanying spreadsheets
4. A list of all building societies can be found on the BSA website at http://www.bsa.org.uk/aboutus/buildsocmember.htm and demutualised institutions at http://www.bsa.org.uk/consumer/factsheets/100010.htm
Neil Johnson
PR & Policy Manager
Building Societies Association
Tel : 020-7520 5903
E-Mail : neil.johnson@bsa.org.uk
Don't forget the BSA's Mortgage Lending in the Credit Crunch Conference on 25th September. More information is at http://www.bsa.org.uk/events/
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