BSA: Strong December for deposits with mutuals
Savings balances held with mutuals increased by £1.5 billion in December 2010, following an increase of £0.6 billion in November. Excluding interest credited to accounts, mutuals had a net receipt of £1.1 billion in December. Total balances at mutuals increased by £154 million in 2010.
Commenting on the figures, Brian Morris, Head of Savings Policy at the BSA, said:
“Savings balances at mutuals increased for a second consecutive month in December giving mutuals a strong end to the year. However, households face a challenging year ahead and may well need to dip into – or defer – savings to supplement their incomes. Growth of household savings balances is therefore likely to remain relatively subdued in 2011.”
Gross mortgage lending by mutuals was £1.8 billion in December, which is down on the £2.0 billion lent in November. Gross lending by mutuals totaled £20.4 billion in 2010. Mortgage approvals made by mutuals in December amounted to £1.2 billion, compared to £1.9 billion in November.
Commenting on the mortgage data, Paul Broadhead, Head of Mortgage Policy at the BSA, said:
“Gross lending by mutuals was slightly lower in December compared to November. However lending has remained relatively stable in second half of 2010. December is typically a quieter month for the mortgage market and a drop in approvals at the end of the year is not uncommon. It is likely, however, that the adverse weather conditions in the period contributed to a more significant decline in approvals than one would normally expect.”
Mutual statistics December 2010
Click here to view the full Lending PR December 2010 document.
Click here to view the full Funding PR December 2010 document.
Data below are not seasonally adjusted.
. Mutuals’ gross lending amounted to £1,811 million in December 2010 compared to £1,998 million in November.
. Net lending by mutuals in December 2010 was -£379 million compared to -£385 million in November.
. Mortgages approvals by mutuals in December 2010 were £1,233 million compared to £1,900 million in November.
. Savings balances at mutuals increased by £1,503 million in December 2010, compared to an increase of £625 million in November.
. Mutuals had a net receipt into savings accounts of £1,090 million in December 2010 compared to a net receipt of £432 million in November.
. Mutuals had a net withdrawal of £201 million from Cash ISAs in December 2010 compared to a net withdrawal of £475 million in November.
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
1. Detailed statistical tables accompany this release.
3. Photographs of Brian Morris and Paul Broadhead are available from the BSA press office, or from the Association’s website at www.bsa.org.uk or Headlinemoney www.headlinemoney.co.uk
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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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