BSA: Savings balances increase at mutuals in April
Balances held in savings accounts at mutual institutions increased by £929 million in April compared to an increase of £534 million in March. After interest credited to accounts is excluded, mutuals had a net receipt of £537 million in April.
Commenting on the savings figures, Adrian Coles, BSA Director-General, said:
“Mutuals have been able to attract savers by offering competitive rates, especially on popular ISA products. However, maintaining positive inflows will remain a challenge while the Bank Rate remains low as savers may seek higher returns elsewhere, albeit at greater risk, or may opt to repay debt instead.”
In the mortgage market, mutuals approved £1,527 million worth of loans in April, compared to £1,677 million in March, a 9% reduction. Gross lending was £1,399 million in April, a 13% fall on the £1,605 million in March.
Commenting on the lending figures, Mr Coles said:
“Lending activity in April was relatively subdued compared to March, and given the continuing uncertainty regarding unemployment, possible tax rises, the future path of house prices and the availability of mortgage funds, lending figures are likely to remain at a similar level in coming months.”
Mutual statistics April 2010
Data below are not seasonally adjusted.
Mutuals’ gross lending amounted to £1,399 million in April 2010 compared to £1,605 million in March.
Net lending by mutuals in April 2010 was -£923 million compared to – £765 million in March.
Approvals by mutuals in April 2010 were £1,527 million compared to £1,677 million in March.
Mutuals had a net receipt of £537 million in April 2010 compared to a net withdrawal of £318 million in March.
Mutuals had a net receipt of £668 million from cash ISAs in April 2010 compared to a net receipt of £210 million in March.
~Ends~
Notes to editors
1. Detailed statistical tables accompany this press release.
2. The Building Societies Association (BSA) represents mutual lenders and deposit takers in the UK including all 51 UK building societies. Mutual lenders and deposit takers have total assets of almost £375 billion and, together with their subsidiaries, hold residential mortgages of almost £240 billion, 19% of the total outstanding in the UK. They hold over £245 billion of retail deposits, accounting for just under 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.
Fiona Cornes
020 7520 5926
fiona.cornes@bsa.org.uk
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