Member Review 2021
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Member Review 2021 Powering Life The Government’s support for people and businesses affected by COVID-19 has clearly cushioned what might otherwise have been Chairman’s a period of extreme difficulty and I realise that some may yet face hardship. We will continue to help, particularly borrowers, Statement should they face an uncertain future. In reacting in the way we have to the Key Performance Indicators 2018 2019 2020 2021 pandemic, there have been some Pre-Tax Profit £1.55m £1.60m £1.48m £2.21m consequences. We have not been able to Total Assets £397.4m £438.5m £541.3m £525.7m grow in the way that we have planned prior to the pandemic, and our mortgage Reserves £22.5m £23.8m £24.9m £26.7m balances are down on last year. Profit levels Mortgage Lending £82.2m £92.6m £125.1m £21.3m have been maintained whilst our policies of fair interest rates have also been a feature of our operations. Capital remains strong I joined your Board in January 2020 and was asked by my and has grown year-on-year from £24.6m fellow Directors to become Chairman after David Milner’s to £25.8m. retirement at the July Annual General Meeting. This is, I’m hoping that therefore, my first statement to Members. Our strategy has received further focus the values we hold 2020 will surely go down as one of the members’ requests. I know some of during the year and continues to be about worst years in living memory. In addition the changes we have had to make controlled mortgage growth funded by dear as a local to having to cope with the COVID-19 have not been easy for members or deposits from saving members, whenever building society pandemic, we were faced with the colleagues. I recall standing in a queue possible, at rates which are above market uncertainties that leaving the EU has outside our Gornal branch on a cold averages. The mortgage markets we operate have stood us in in are generally not well served by larger presented. On the world stage, a divided December day for 30 minutes to ensure great stead in 2020 United States was set to choose its next we could maintain social distancing to lenders. This is a central pillar of our strategy. president. On their own, each of those protect everyone. Put simply, we have the expertise within the and will continue to items was capable of causing immense Society to assess and service borrowers and At the same time, we decided to disruption. Occurring together was a mortgages that others can’t. do so in the future. concentrate efforts on existing test of resilience that hopefully we will members rather than pursue new I look forward with not have to endure again. business. This meant that we were able Returning to the pandemic, I would like to excitement to the Dealing with any sort of crisis is to deal with the many requests from express deep condolences to any of our something we, at Dudley, prepare for borrowers for a period of mortgage members or colleagues who have lost years ahead. as we have over our history. In recent payment deferral. When I say ‘deal’, loved ones during the ordeal. Can I also pay times we have invested cautiously in I mean that we were able to speak tribute to my colleagues at Dudley who have being able to maintain services even directly to every one of the 570 carried on during difficult circumstances but in extremely adverse circumstances. In borrowers who approached us for this whose resilience has been and continues to fact, it is a requirement of our regulators. facility. For me, this goes to the heart of be exceptional. Our response to the COVID-19 what a building society should stand for. As ever, your Board has been highly pandemic was swift and decisive. Whilst Automation has its place, but at times of supportive and I would like to especially thank we have had to reduce branch opening need people want to talk to people. I am Paul Doona who steps down this year after hours during each period of restriction delighted that we were able to do this. serving nine years as a director. To finish, may imposed on us, we are treated as By shortening branch opening hours it I thank you, our members, for the support PETER HUBBARD essential and we have been able to also meant that our colleagues could you have shown during the last year. I am CHAIRMAN keep all services operating, changing speak to more members choosing to convinced that we will see the end of this several times to accommodate our telephone rather than visit us. 20 MAY 2021 situation quite soon. 2 Our approach is to understand what risks might be faced by borrowers even if they haven’t yet made the statute books. An Chief Executive’s example of what might come is improved property insulation. At the same time, we will need to be able to calculate and seek to Review reduce our own carbon footprint. From 2022, we will be required to report on progress in our Annual Report and Accounts. As the Chairman has already described, the last year has been like no other. By the time our Report and Accounts are published, I hope that we will have vaccinated a large proportion of the It may not have escaped members that a population and that confidence will have returned. very significant new feature was introduced earlier this year. We launched an Online During the periods of restricted Many are asking what the fallout and Service for new and existing members to movement over the last year, we impact will be from the economy’s near open a regular savings account online as have always tried to be there for our closure. We continuously monitor and well as view their accounts with us. members, our employees and our model a variety of outcomes, some I consider this to be an important step communities. Afternoon appointments severe, and in all cases the Society has forward for your Society and, for many, only for vulnerable customers were sufficient capital to withstand the effect. it will become the chosen way of dealing with We will come through routinely available. Occasionally it was In terms of interest rates, the Bank of us. At the same time as the Online Service necessary to close branches at short England lowered its Bank Base Rate to came on stream, we made some alterations this pandemic and I notice. We did so to enable employees a historically low 0.10% in April 2020. to the brand to ensure its alignment to look forward to your to get themselves tested and for the When the next movement will take this new way of serving members. I would branch in question to be cleaned. This place will only be determined as the urge members to take a look at the new Society continuing became a routine part of the lockdowns. economy improves and consumer Online Service and also to let us have email confidence returns. addresses if you have one. Many members to serve you, our A very strong sense of community has will want to continue to deal with us in a been more evident than in the recent As the Chairman’s statement mentions, members, as we traditional fashion but for others, opening an past and I will touch on just a couple of we deliberately slowed new mortgage electronic capability gives us the opportunity have for the last examples. With the Society’s support, business through most of 2020 to to make our services available to those who employees were able to ask local NHS concentrate on existing members. As a 163 years. want a modern, digital experience. hospital staff what they most valued. result of higher mortgage redemptions For those of us looking in at how the NHS than completions and taking a new was coping, the provision of wash-bags drawdown of the latest Bank of England I would like to add my very sincere thanks probably wasn’t uppermost in our minds Term Funding Scheme, we have ended to members for their support and patience but on learning that those supervising our financial year with a high level of during the past 16 months. Finally, and to our the care of COVID-19 patients had liquidity. We considered this prudent employees, for the way you have adapted to to shower after every session, the and fair to members wishing to continue a changed way of working, a heartfelt thank initiative was seized. The delivery of 1,100 placing their savings with us. The you to each and every one of you. washbags to two local NHS hospitals reduction in mortgage balances and was extremely well-received at a time consistent level of profitability has led to when relatively little was known about improved capital ratios. the pandemic. There were many other Financial regulators throughout examples of employees and their the world have directed financial teams rallying to help whenever it was organisations to consider climate TEXT YOUR BOARD needed and this has become part of the change amongst the risks and JEREMY WOOD Society’s Giving Back Programme. issues that should be measured 07860 027559 CHIEF EXECUTIVE and managed. 20 MAY 2021 4 A Year in Numbers 1,813Supporting Savers Targeted2,700 savings growth The Society continues to demonstrate its commitment 2,700 new savers joined the to savers, with 87% of savings customers on rates above Society, contributing to an APRIL the market average.