BSA: Savings balances held with mutuals increase in November
Savings balances held at mutuals increased by £0.6 billion in November 2010, following a decrease of £1.1 billion in October. Excluding interest credited to accounts mutuals had a net receipt of £0.4 billion in November.
Commenting on the figures, Adrian Coles, Director-General of the BSA, said:
“Savings flows can be quite variable on a month to month basis, and though it is pleasing to see balances held at mutuals increase in November it remains to be seen whether this is the beginning of a sustained trend. However, 2011 looks set to be another challenging year for retail deposit takers as household finances remain tight and the Bank Rate is likely to be held at its record low for much of the year.”
Gross mortgage lending by mutuals in November was £2.0 billion, the same as in October. Mutuals approved mortgages of £1.9 billion in November, compared to £1.8 billion in October.
Commenting on the mortgage figures, Mr Coles said:
“Gross lending by mutuals was broadly flat on October, despite activity usually dropping off at this time of year. However, activity in the mortgage market next year is likely to continue to be relatively subdued because of challenges for lenders in raising funds for lending and reduced demand from mortgage borrowers until the outlook for the economy and labour market becomes more positive.”
Mutual statistics November 2010
Data below are not seasonally adjusted.
. Mutuals’ gross lending amounted to £1,998 million in November 2010 compared to £1,964 million in October.
. Net lending by mutuals in November 2010 was -£388 million compared to -£290 million in October.
. Mortgages approvals by mutuals in November 2010 were £1,900 million compared to £1,760 million in October.
. Savings balances at mutuals increased by £625 million in November 2010, compared to a decrease of £1,118 million in October.
. Mutuals had a net receipt into savings accounts of £432 million in November 2010 compared to a net withdrawal of £1,310 million in October.
. Mutuals had a net withdrawal of £475 million from Cash ISAs in November 2010 compared to a net withdrawal of £94 million in October.
Important media note: For data relating to January 2010 onwards, the Bank of England has combined figures for building societies and mutually owned banks. This new data is reported as the ‘mutual sector’. Previous data will not be restated and therefore it is not possible to make comparisons with previous years. For more information about this change please see www.bsa.org.uk
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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 49 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 21% 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.
3. 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
4. Contact – Fiona Cornes, Fiona.cornes@bsa.org.uk / 020 7520 5926
Keeley Ball
PA to Adrian Coles, Director-General
The Building Societies Association
6th Floor, York House
23 Kingsway
London WC2B 6UJ
Tel: 020 7520 5902
Fax: 020 7836 4176
Email: keeley.baker@bsa.org.uk
Web: www.bsa.org.uk
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