BSA: Strong April for mutuals’ deposit
Savings balances held with mutuals increased by £1.5 billion in April 2011, compared to an increase of £0.9 billion in April 2010. After interest credited is excluded, mutuals had a net receipt of £1.0 billion in April this year. Commenting on the savings figures, Adrian Coles, Director-General of the Building Societies Association, said:
“Mutuals had a significant inflow of funds into savings accounts during April which was helped by particularly strong deposits into ISA accounts compared to April last year. However, it will be difficult for deposit takers to maintain a positive inflow of funds this year given the squeeze on household finances. The added competition from state-backed NS&I could also make attracting funds more challenging.”
Gross lending by mutuals totalled £1.7 billion in April 2011, up 19% compared to £1.4 billion in April last year. Approvals were also up on the year, as mutuals approved £1.7 billion of mortgages in April 2011, compared to £1.5 billion in April 2010, a 14% increase.
Mr. Coles said:
“Lending activity by mutuals continues to improve with both gross lending and approvals in the first four months of the year up over 20% compared to the same period in 2010. This is a promising trend, but the number of transactions and the level of mortgage lending are likely to remain low until economic growth recovers and consumer confidence returns.”
Mutual statistics April 2011
Data below are not seasonally adjusted.
. Mutuals’ gross lending amounted to £1,622 million in April 2011 compared to £1,399 million in April 2010.
. Net lending by mutuals in April 2011 was -£462 million compared -£994 million in April 2010.
. Mortgage approvals by mutuals in April 2011 were £1,731 million compared to £1,517 million in April 2010.
. Savings balances at mutuals increased by £1,468 million in April 2011 compared to an increase of £929 million in April 2010.
. There was a net receipt of £983 million into savings accounts held with mutuals in April 2011 compared to a net receipt of £537 million in April 2010.
. Mutuals had a net receipt of £1,365 million into Cash ISAs in April 2011 compared to a net receipt of £668 million in April 2010.
~ Ends ~
Notes to Editors
Detailed statistical tables accompany this press release.
The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 48 UK building societies. Mutual lenders and deposit takers have total assets of over £365 billion and, together with their subsidiaries, hold residential mortgages of almost £235 billion, 19% of the total outstanding in the UK. They hold more than £245 billion of retail deposits, accounting for 22% of all such deposits in the UK. Mutual deposit takers account for about 36% of cash ISA balances. They employ approximately 50,000 full and part-time staff and operate through approximately 2,000 branches.
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
Rachel Wylie (née Le Brocq)
Press and Public Affairs Manager
The Building Societies Association
6th Floor, York House
23 Kingsway, London
WC2B 6UJ
Tel: 020 7520 5905
Mobile: 07773489644
Fax: 020 7240 5290
www.bsa.org.uk
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