Members’ Review 2019

Members’ Review

Find out more about our achievements in 2019, our people, our communities and what this year has in store for your Society Members’ Review 2019 2 Members’ Review 2019 3

Contents

Your Chief Executive’s Review 2-5 Making Managing Your Money Easier 6 2020 Roadmap 7 Celebrating 160 Years 8 A Great Place to Work 9 Our Communities Matter 10 Affinity Partners & Give 160 11 Summary Financial Statement 13-15 Auditor’s Statement 16 Summary Directors’ 17-18 Remuneration Report Member Information 19 Rob Pheasey, Chief Executive

Your Chief Executive’s Review

This year marks a milestone occasion as we celebrate 160 years of the We continued to support those looking to own their own home, welcoming 1,197 Marsden. Before we look at what the next 12 months has in store, I’d like to new borrowing members, increasing our residential mortgage balances by 12.9% to share with you an overview of our performance in 2019. £471.8m. Our product range continued to help first-time buyers onto the property ladder as well as providing options for those looking to borrow into and during their retirement. A simple business model Once again, we achieved our objective to grow the Society by continuing to attract and We grew the balance sheet to £575.2m during 2019 and in the period since 2016, retain members. The simplicity of our business model is a real strength, allowing us to have grown your Society by 38.3%. We remain profitable, comparable to last year’s remain firmly focused on meeting the needs of our members for savings and mortgages performance, with profit after tax of £1.843m. As planned, we once again increased our - a business model that has ensured the Society’s financial security and resilience reserves, with capital resources relative to assets of 21.33% (2018: 22.83%) decreasing throughout its 160-year history. modestly due to our strategy of growing for economies of scale.

Because we are owned by our members, we’re able to make decisions that meet their Outlook needs and not the performance-related returns demanded by shareholders. This allows The outlook for the coming period signals more of the same, our expectations muted us to take a long-term view in our decision-making, working to make the process of only by those factors that are largely outside our control around the macroeconomy and dealing with the Society easier and more efficient. competitor disruption to key markets. This again is a strength of our business model, that our plans may flex to meet the impact arising from trading conditions, but in the In 2019, we helped more people to save for the future, welcoming 2,217 new saving coming year we do not see this having a material impact. members to the Society and growing share balances by 15% to £498.1m. Our branches remained the primary source of our retail funding and have been a real driver of our As we navigate the post Brexit era and the impact this may or may not have on our customer engagement strategy. economy, we must adapt and change with the market. The adoption of new technology, new regulations and new entrants can be disruptive, but will present opportunities for us as a long established, trusted and financially strong organisation. Members’ Review 2019 4 Members’ Review 2019 5

Total Assets 2019 £575.2m Cost efficiency A YEAR IN VIEW Cost efficiency will be a key strategic priority for the Society. Our administrative up 11.9% (2018: £514.2m) expenses were 15% higher than the previous year, mainly due to completing our investments in people and technology infrastructure. As we continue to grow the Society to achieve our planned scale, we will see a slowing in further investment, a renewed Share Balances New Members focus on cost efficiency and an alignment of capital and balance sheet growth. £498.1m +3,414 Our members up 15% (2018: £433.0m) (2018: 3,050) The future will be shaped by the engagement we have with our members, influencing decisions made on how the business is run, the products and services we offer and the ways in which we’ll ensure access to the Society is relevant and engaging. Residential Profit After Tax Mortgage Balances Our environment We have a growing awareness of our positioning in relation to the environment. £471.8m £1.843m We are committed to managing and reducing our impact on it and continue to up 12.9% (2018: £417.8m) up 4.7% (2018: £1.761m) work on becoming more efficient in heating and lighting our buildings, increasing the effectiveness of recycling programmes and improving colleague awareness of environmentally responsible working practices.

Thank you Our people and our members continue to be the driving force behind the strong and successful Society we’ve created and I would like to thank you for your ongoing support. We have plenty to celebrate in our 160th year and I look forward to what it has in store.

View our Summary Financial Statement from page 13 onwards. Our full Report Rob Pheasey & Accounts will be available online or in Chief Executive branch from 25 March. Members’ Review 2019 6 Members’ Review 2019 7

Making Managing Your Money Easier 2020 Roadmap

During 2019, we’ve been working on ways to make it easier for you to manage 2020 will be another busy year with your money, so we’ve made some changes to our digital services. plenty of things planned to benefit our members including... View your branch-based accounts 24/7 If you have branch-based savings accounts, you can now view them 24 hours a day, New-look branches 7 days a week on our online platform. Registering is easy - just visit our website We’ll be making some changes to the way and click the ‘eSavings login’ on the top right-hand side of each page, following the our branches look to make you feel more instructions on screen to register. at home when you’re visiting us.

Once you’ve completed your registration, you’ll receive a welcome letter through the Member feedback post to your registered address which will include your User ID and an Activation Key to You’ll notice feedback forms in all our use to authenticate your registration. You’ll be guided through the next steps online. branches and we’d encourage you to fill them in. We want to know what you An extra step to keep you safe think about your Society so we can make As part of the changes, we’ve launched two-factor authentication, adding an extra layer changes and improvements all year round. of security to your online account. More choice Whether you’re an existing eSavings user, or registering to view your branch-based We’ll be making changes to our home accounts online, you’ll be asked to set up two-factor authentication. This means that and mortgage product range, each time you log in, you’ll be asked to enter a code sent via text message or phone call giving you more choice and allowing us to so we know it’s you accessing your account. help more members.

Next Day Faster Payments Improvements to our technology We’ve also introduced Next Day Faster Payments which means you’ll be able to Our focus on technology will continue with withdraw funds in branch from your branch-based accounts via cash, cheque or into the the aim to make it as easy as possible for nominated account you set up on our eSavings platform. you to interact with us. This will include reviewing our ‘first touch’ contact and You can set up your nominated bank account when you register to view your branch- evaluating new telephony technologies. based accounts online or by logging in to the eSavings platform and clicking the ‘Your Bank Account’ tab on the left-hand side of your screen if you already have an account.

Online Mortgage Transfer For members who have a mortgage with us, we’ve made it easier to switch to a new Marsden mortgage when your current product comes to an end. Our new Mortgage Transfer service means you’ll be able to manage your maturity by viewing products Sign up today! you’re eligible for, requesting illustration offers and applying for a product online. If you’d like to receive the latest news Keeping your mortgage with the Marsden means there are no lengthy application forms about our products and services to complete, no paperwork to sign, no property valuation required, no income checks straight to your inbox, sign up to our and no application fees to pay. e-newsletter! You can sign up in branch, or by telling us you’d like to receive emails You don’t need to do anything to register for our online Mortgage Transfer service. We’ll by updating your preferences on the ‘Your write to you when your product nears maturity with instructions on how to access it. Details’ section of your AGM voting form.

Members’ Review 2019 8 Members’ Review 2019 9

97% of colleagues are proud to work for the Society Celebrating 160 Years A Great Place to Work

It’s not every day you get to celebrate 160 years in business, but this year marks Our people make a big difference to the Society and how it operates, which is a special milestone for us. Established in 1860, we’ve helped members to own why we’d like to share with you a little of what goes on behind the scenes. their own homes and save for the future ever since. We have over 100 colleagues across our branches and Principal Office who work hard On Wednesday 29 February, 1860, a group of local businessmen met at the house of to make things happen, trust in the Society’s purpose and the direction in which it is Thomas Holland in Nelson. After discussing the lack of cottages in the neighbourhood heading. Our 2019 engagement survey showed that 97% of colleagues were proud and the demand for homes for its growing population, they decided to set up the Great to work for the Marsden with 95% saying they would recommend our products and Little Marsden Permanent (named after two townships of the and services. parish at the time).

The idea was simple - members would pay a monthly subscription to pool funds and finance the building of homes for each other. This would attract more funding which would enable more houses to be built, and in turn, attract more members.

Now recognised as Lancashire’s largest building society, we pride ourselves on our heritage and the fact that we are one of the few societies who have not gone through merger or acquisition, using our own resources to grow.

But what does it mean to be a mutual? Being a mutual means that the Society is owned and run for the benefit of you, our We’re committed to our people so to continue supporting them, we launched new members. We have no shareholders to please or pay dividends to, so all the profit we initiatives across the course of the year. We trained five colleagues in Mental Health make is retained within the Society to continue to benefit its members and help it grow. First Aid to support their peers across the Society. We introduced new apprentices to the business, supporting them with qualifications whilst in full-time, paid employment. Financially strong, your Society attracts new members every day. Trusted by you We also ran a leadership course for our managers to develop their skills and give them for generations, we’re here to plan your financial future, together. the tools they need to lead their teams now, and in the future. Members’ Review 2019 10 Members’ Review 2019 11

Our Affinity Partners

We support local causes across the region. From internal fundraising to events in our branches, we believe in giving something back to those who need it the most. Our affinity savings account helps us to do this, with support from our members.

For every £1 saved in a Marsden affinity account, we’ll pay a donation to the partner you select from our chosen charities - North West Air Ambulance, Pendleside Hospice or Sight Advice South Lakes.

Since our affinity account was introduced in 2007, we’ve donated almost half a million pounds to our partners, money that really does make a difference. Our ‘Give 160’ Initiative

This year, we’re asking colleagues to get involved with an initiative to celebrate our 160th birthday by doing 160 things to raise as much money as possible for North West Blood Bikes, the charity our colleagues have chosen to support.

Our Communities Matter North West Blood Bikes are a group of volunteer motorcyclists who offer a free, professional, out of normal working hours Whether it’s a charity fundraiser or an agricultural show, we like to get out and service for the transportation of urgent and emergency items to about to support our local communities. hospitals, e.g. blood, samples, patient notes, theatre equipment, etc. This service is solely for the benefit of the publicly funded In 2019 we attended the Great Eccleston Show, Garstang Show and Nelson Food emergency services and the patients being treated by them, Festival, as well as sponsoring events such as Tai Chi in the Park, Nelson, and helping aiming to save hospitals money that would be spent on taxis to fundraise at Pendleside Hospice’s Carnival in the Park, Barrowford. Our founders to transport such items, and allowing them to put more into wanted to build something better for the community and so do we, that’s why we’ll patient care. continue to support our local communities in 2020 and beyond. Staffed completely by volunteers who give up their time to provide the service, North West Blood Bikes receive no payment for their services, not even fuel expenses, and receive no central funding. Dates for Your Diary

We’ve already got dates booked in the diary for 2020 and we hope you’ll stop by to see us. We’ll be at the Great Eccleston Show on the 18 and 19 July and the Garstang Keep your eyes peeled in branch to find out how our colleagues are supporting our Show on 1 August with more events to be announced over the coming months. Keep ‘Give 160’ initiative or visit the news section of our website to see what we’ve been up to. checking our website for more details. Members’ Review 2019 12 Members’ Review 2019 13

Summary Financial Statement for the year ended 31 December 2019

This financial statement is a summary of information in the audited annual accounts, the Directors’ Report and the Annual Business Statement, all of which will be available to members and depositors free of charge online and on demand at every branch from 25 March 2020. Directors’ Summary

Growth In 2019 we once again achieved our objective to grow the Society by continuing to attract and retain members through competitive products and excellent service. Our strong financial performance meant that we increased our reserves and maintained our strong capital position whilst supporting strategic investment in infrastructure and capability.

In our mortgage business, we grew balances by 12.9% to £471.8m, increasing gross lending to £135.0m (2018: £122.8m) and have continued to focus on underserved asset classes, away from the highly competitive sectors of the mortgage market which have seen the greatest impact on falling lending yields. Our positioning within our core lending markets, supported with our responsible lending approaches and individual case underwriting has minimised much of this impact.

2019 represented the first full year of lending to the residents in Guernsey with originations of £10.9m, a planned and cautious entry to a new market. In the current year we will seek to grow our lending operations, working closely with corporate partners on the Island.

The Society continues to value the importance of our intermediary partnerships, introducing new members to the Society and providing independent advice for those hoping to secure home ownership or remortgage from another lender. Recognising the importance of providing high quality mortgage advice, the Society has invested in extending the capability within our lending teams. In year we grew our new direct business to 10.9% of gross lending (2018: 5.5%) and helped over 1,300 households to review their mortgage arrangements with the Society, retaining 881 or 67% on a new mortgage product with the Society.

We continued to grow our savings business in year by 15.0% (2018: 12.3%), taking total savings with the Society to £498.1m. We welcomed over 2,200 new saving members through our retail branches, which remains the principal source of new funding into the Society. Members’ Review 2019 14 Members’ Review 2019 15

Summary Financial Statement (continued) Results for the Year 2019 2018 for the year ended 31 December 2019 £000 £000 Net interest receivable 9,004 8,280 Other income and charges 412 369 Our commitment to the branches, and to the Our team for the future Fair value gains on financial instruments 1 36 communities in which we operate, remains as We have continued to welcome new colleagues Administrative expenses (7,375) (6,480) strong as ever, to be enhanced through digital to the Marsden team. Our recruitment supports Provisions for bad and doubtful debts 132 79 distribution to improve services and complement growth in the existing teams, colleagues as they Provisions 81 (100) our engagement with branch members. plan for retirement and has focused on new skills Operating profit 2,255 2,184 that will enhance our organisational capability. Profit on sale of tangible and intangible assets 7 24 Financial performance This will remain a strategic priority for 2020 Profit on the year before taxation 2,262 2,208 In 2019, we increased our size, taking the as we move to acquire the competencies and Taxation (419) (447) balance sheet to £575.2m - an increase of 11.9% capacities required to build the modern mutual Profit for the year 1,843 1,761 or £61m. This is aligned to our overall strategy to organisation to which we aspire. increase scale to support the required strategic Financial Position at the end of Year 2019 2018 investment around infrastructure and capability. We have made changes to our colleague Assets £000 £000 In the period since 2016, your Society has grown engagement programme which is strongly Liquid assets 99,356 92,226 by 38.3% or £159.2m. orientated around our values as an organisation, Derivative financial instruments 3 26 shaping the decisions we take and in the external Mortgages 472,977 419,146 Noting the impact arising from strategic perception of the Society as we grow. Retaining Fixed and other assets 2,879 2,828 investment that increased our costs by £0.895m, the Marsden values alongside the changes we Total assets 575,215 514,226 we delivered a stable profit profile comparable are making to secure our future is a challenge we Liabilities to last year’s performance, with profits after face, not solely as a Board, but within the overall Shares 498,124 433,008 tax of £1.843m (2018: £1.761m). As a result, Marsden community. Borrowings 34,328 40,080 we once again increased our reserves and as Derivative financial instruments 66 11 planned, our capital resources relative to assets Our high colleague engagement stems from Other liabilities 2,222 2,459 the trust that colleagues have in the Society’s decreased to 21.33% (2018: 22.83%) due to our Reserves 40,475 38,668 purpose, with 97% saying they are proud to work strategy of growing for economies of scale. Total liabilities 575,215 514,226 for the Society and 95% who would recommend Our next digital steps the Society’s products and services. Summary of Key Financial Ratios 2019 2018 % % During 2019 we completed our IT transformation We continue to invest in our people and our Gross capital as a percentage of shares and borrowings 7.60 8.17 programme with infrastructure moved to cloud Liquid assets as a percentage of shares and borrowings 18.66 19.49 servicing, replacing the use of Society managed culture, to create an organisation that is fit for the future. Retaining that highly personal Profit for the year as a percentage of mean total assets 0.34 0.36 data centres. This is an important step in Management expenses 1.35 1.31 engagement - aligning digital technology with a improving our resilience and security, providing Management expenses net of other income 1.28 1.24 the platform that will deliver improved flexibility human touch requires careful planning. and new services/functionality for the benefit of Definitions our members. We will continue to develop new roles and to The gross capital ratio gives an indication of the assets measures the profit after taxation for the year support the change in roles as the business extent to which the Society is funded by retained as a proportion of the Society’s total average assets We introduced the first of our new digital evolves, acquiring and developing new skills, earnings and other reserves compared with shares during the year. The Society maintains a reasonable services, supporting online mortgage retention whilst ensuring that the organisation embraces and borrowings. Gross capital provides a financial level of profit each year in order to keep its capital which has improved the borrower journey in change and responds with flexibility to a new cushion against any losses which might arise from ratio at a suitable level to protect investors. selecting their next mortgage with the Society financial services market. Its importance is the Society’s activities to safeguard the interests Management expenses represent the total cost of on maturity. reflected in the experience our colleagues have of investors. administrative expenses and depreciation. They in working for the Marsden and in the way in The liquid assets ratio is a measure of the constitute the cost of employing staff, complying Launching in February 2020, our branch which we continue to deliver for our members proportion of the Society’s funding covered by cash with legislation, advertising and maintaining services will be supplemented with the widening against a backdrop of change. assets or those readily convertible into cash. Liquid the Branch network and Principal Office. The of access to Marsden Online for our branch assets are by their nature realisable to allow the management expenses ratio measures the members and the commencement of our digital For and on behalf of the Board. Society to meet withdrawals by investors, make new proportion that these expenses bear to the simple engagement programme that will improve the mortgage and fund its business activities. average of total assets at the beginning and end of the financial year. connectedness of members to their Society. Profit for the year as a percentage of mean total J L Walker R M Pheasey Approved by the Board of Directors on 26 February 2020 and signed on its behalf by: Later in the year we will bring a widening of Chairman Chief Executive third-party support into our services through the use of digital interfaces or APIs. Many will 26 February 2020 run in the background with the advantages J L Walker R M Pheasey N Walker brought to both members and colleagues from Chairman Chief Executive Finance Director & Chief Risk Officer increased automation to simplify and speed-up our operations. Members’ Review 2019 16 Members’ Review 2019 17

Independent auditor’s statement to the members and depositors of Summary Directors’ Remuneration Report Marsden Building Society

Opinion Our report on the Society’s full annual accounts Directors’ Remuneration Report We have examined the summary financial describes the basis of our opinions on those The purpose of this report is to inform members In addition, executive directors can receive an statement of Marsden Building Society (‘the annual accounts, the Annual Business Statement about the policy for the remuneration of amount in excess of the Society Bonus Scheme Society’) for the year ended 31 December and Directors’ Report. executive, senior management and non-executive reflecting individual performance in delivering 2019 set out on pages 13 to 15. On the basis directors and the process for determining the outcomes in excess of planned performance level of remuneration. of the Society. Any payment is taxable but non- of the work performed, as described below, in Directors’ responsibilities our opinion the summary financial statement pensionable. A 17% bonus, as a proportion of is consistent with the full annual accounts, the The directors are responsible for preparing the The Society has adopted a Remuneration Policy reference salary prior to any salary sacrifice, was Annual Business Statement and Directors’ Report summary financial statement within the Members’ which describes how the Society has complied payable in respect of 2019 (2018: 17%), 9% in of the Society for the year ended 31 December Review, in accordance with applicable United with the requirements of the Remuneration Code, respect of the Society Bonus Scheme and 8% in 2019 and conforms with the applicable Kingdom law. as defined by the Regulator. We are committed recognition of individual performance (2018: 9% requirements of section 76 of the Building to best practice in corporate governance and plus 8%). Payments under the scheme are made during the first half of the year following that in Societies Act 1986 and regulations made Auditor’s responsibilities will ask members to vote, on an advisory basis, under it. on the Directors’ Remuneration Report at the question and are not currently subject to deferral. Our responsibility is to report to you our opinion forthcoming Annual General Meeting. on the consistency of the summary financial Executive directors also participated in a defined Basis of opinion statement within the Members’ Review with the The Society’s remuneration policy supports contribution Group Personal Pension Scheme Our examination of the summary financial full annual accounts, Annual Business Statement our strategic objective of growing our savings which is available to all eligible employees of statement consisted primarily of: and Directors’ Report and its conformity with and mortgage business to deliver long-term the Society at a contribution rate of 10% of the relevant requirements of section 76 of the Agreeing the amounts and disclosures sustainable value to our members, avoiding a salary per annum. From 1 July 2011 the Society • Building Societies Act 1986 and regulations included in the summary financial statement focus on short-term performance. The Society’s introduced a Salary Sacrifice Scheme for all staff made under it. to the corresponding items within the full people live by our five core values, which including executive directors. annual accounts, Annual Business Statement underpin delivery of our strategy: and Directors’ Report of the Society for the The purpose of our work and to whom we There are currently no formal service contracts year ended 31 December 2019, including owe our responsibilities • Make a lasting impression; in existence for executive directors at the Society. The employment of executive directors can be consideration of whether, in our opinion, the • Proud of our past, excited by our future; This auditor’s statement is made solely to the terminated by either party giving one year’s information in the summary financial statement Society’s members, as a body, and to the • Passionate about people; has been summarised in a manner which is notice with compensation for loss of office being Society’s depositors, as a body, in accordance • Work together; and not consistent with the full annual accounts, 12 months remuneration. with section 76 of the Building Societies Act • Deliver on promises. the Annual Business Statement and Directors’ 1986. Our work has been undertaken so that Report of the Society for that year; The Remuneration Committee is responsible we might state to the Society’s members and We believe that remuneration of executive for determination of policy on the level of Checking that the format and content of the • depositors those matters we are required to state directors and senior managers should be remuneration payable to the executive directors, summary financial statement is consistent with to them in such a statement and for no other comparable with that of similar organisations the senior management team and the Chairman. the requirements of section 76 of the Building purpose. To the fullest extent permitted by law, in the financial sector to attract, retain and The Chairman takes no part in the discussion in Societies Act 1986 and regulations made we do not accept or assume responsibility to motivate individuals with the required skills and respect of his own remuneration. The Committee under it; and anyone other than the Society and the Society’s competence. The remuneration of executive takes account of information on remuneration • Considering whether, in our opinion, members as a body and the Society’s depositors directors and senior management is basic salary, payable at comparable building societies and the information has been omitted which although as a body, for our work, for this statement, or for an annual bonus (when payable), pension, death time commitment and responsibility in respect of not required to be included under the relevant the opinions we have formed. in service benefits, company car and private the Chairman. requirements of section 76 of the Building medical insurance. Societies Act 1986 and regulations made The Remuneration Committee had three under it, is nevertheless necessary to include Basic salaries are reviewed annually taking meetings during 2019. The composition of the Alain de Braekeleer (Senior Statutory Auditor) to ensure consistency with the full annual into account the Society’s overall performance; Committee as at 31 December 2019 was C A for and on behalf of KPMG LLP, accounts, the Annual Business Statement and individual performance; the salaries and Ritchie (Chairman), M L Ibbs, C McDonald and Statutory Auditor Directors’ Report of the Society for the year incentives payable to executives in similar roles J L Walker. The Chief Executive attends each Chartered Accountants ended 31 December 2019. within building societies and levels generally meeting by invitation. Neither the Chairman or 1 Sovereign Square, Sovereign Street, within the wider financial services industry. Chief Executive take part in the discussions on Leeds, LS1 4DA We also read the other information contained Executive directors, senior managers and staff their individual remuneration. in the Members’ Review and consider the participate in the Society’s Bonus Scheme. 26 February 2020 implications for our statement if we become The level of bonus paid is based on criteria set The terms of reference of the Remuneration aware of any apparent misstatements or material by the Board each year, linked to the overall and Non-Executive Director Remuneration inconsistencies with the summary performance of the Society including both Committees are published on the financial statement. business and risk management objectives. Society’s website. Members’ Review 2019 18 Members’ Review 2019 19

Summary Directors’ Remuneration Report (continued)

Remuneration of non-executive directors, and R M Pheasey. The remaining non-executive excluding the Chairman, is determined by the directors take no part in discussion in respect of Non-Executive Director Remuneration Committee their own remuneration. taking account of the time commitment and responsibility of the role and the remuneration Non-executive directors do not participate in the and conditions for non-executive directors at Society’s Bonus Scheme or receive other benefits comparable societies and financial institutions. or any pension entitlement. There are no service The composition of the Committee at 31 contracts in existence for non-executive directors December 2019 was J L Walker (Chairman) of the Society. Member Information Directors’ remuneration (audited information) Pensions Each year, lots of changes take place but here are some of the main points to take Fees/ Variable and group life note of as a member of the Marsden. 2019 Salary Remuneration Benefits contributions Total Non-executive £ £ £ £ £ J L Walker 49,350 - - - 49,350 Why your money is safe with us M R Gray 26,752 - - - 26,752 No ordinary investor in a building society savings account has lost money since at least A M Hope 26,752 - - - 26,752 M L Ibbs Senior Independent Director 26,752 - - - 26,752 1945, and probably for a long time before that*. C McDonald 26,752 - - - 26,752 C A Ritchie 26,752 - - - 26,752 Your eligible deposits with Marsden Building Society are protected up to a total 183,110 - - - 183,110 of £85,000 for sole accounts (£170,000 for joint accounts) by the Financial Services Executive £ £ £ £ £ R M Pheasey Chief Executive 166,878 30,431 46,047 13,601 256,957 Compensation Scheme, the UK’s deposit protection scheme. Any deposits you N Walker Finance Director and CRO 122,793 23,801 31,037 17,022 194,653 hold above the £85,000 limit are not covered. Please visit www.fscs.org.uk for 289,671 54,232 77,084 30,623 451,610 more information. Pensions Fees/ Variable and group life What happens if my savings rate changes? 2018 Salary Remuneration Benefits contributions Total Non-executive £ £ £ £ £ We’ll tell you the interest rate that applies to your account (and when it is paid/credited) J L Walker Chairman From 1 March 2018 34,418 - - - 34,418 when you open it. This information is also available: R W Barlow To 24 July 2018 27,751 - - - 27,751 T T Brooke To 24 July 2018 14,920 - - - 14,920 M R Gray From 1 June 2018 15,169 - - - 15,169 • In our current savings rate leaflet; A M Hope 25,755 - - - 25,755 • On our website; M L Ibbs Senior Independent Director 25,755 - - - 25,755 • On our telephone helpline; C McDonald From 1 June 2018 15,169 - - - 15,169 • By asking our staff; and C A Ritchie 25,755 - - - 25,755 184,692 - - - 184,692 • By looking at notices in our branches. Executive £ £ £ £ £ R M Pheasey Chief Executive 162,873 29,325 41,427 9,277 242,902 For variable rate products, if the interest rate on your account falls, and the balance in N Walker Finance Director and CRO 113,532 22,950 29,361 21,416 187,259 your account is £100 or more, we will personally notify you of the change. 276,405 52,275 70,788 30,693 430,161

From 1 July 2017, in response to implementation of changes to personal taxation in respect of pension What’s my ISA allowance this year? contributions, the Board resolved to transition from an allowance of 10% of salary in respect of If you have a Cash ISA account with us you can make further subscriptions to your pension contributions to a £10,000 pension contribution with the balance to 10% of salary paid as a cash allowance. Executive directors’ salaries are disclosed net of salary sacrificed under the scheme account from 6 April 2020. Limits for the 2020/2021 tax year can be found on our available to all staff, within which the executive directors’ participate, with salary sacrificed disclosed website www.themarsden.co.uk within pensions and group life contributions. Please remember that you can only subscribe to one Cash ISA in any tax year. You can find out whether you subscribed to your Cash ISA in the current tax year by visiting C A Ritchie your local branch or by contacting Member Services on 01282 440500*. Chair of the Remuneration Committee

26 February 2020 *The Building Societies Association (BSA) Get in touch

In branch For details of our branch locations and opening hours, visit our website

Online Visit us at www.themarsden.co.uk

By phone Call us on 01282 440500*

By post Write to us at Principal Office, 6-20 Russell Street, Nelson BB9 7NJ

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Marsden Building Society is a member of the Building Societies Association. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority under registration number 206050. Principal Office, 6-20 Russell Street Nelson Lancashire BB9 7NJ. *Calls will be recorded and may be monitored. Lines open Mon-Fri 9:00-4:45pm and Sat 9:00-12noon. We act as an introducer and our funeral plans are provided by Dignity Pre Arrangement Limited. A company registered in England No. 1862158. VAT Registration No. 486 6081 14. Registered office: 4 King Edwards Court, King Edwards Square, Sutton Coldfield, West Midlands B73 6AP. We act as an introducer and our home insurance is underwritten by Royal & Sun Alliance Insurance PLC (RSA) (No. 93792). Registered in England and Wales at St Mark’s Court, Chart Way, Horsham, West Sussex RH12 1XL. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registered in the Financial Services Register under 202323. 1168-19