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Thread: Manchester BS

  1. #11
    Expert planteria will become famous soon enough
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    good insight HB,
    and sorry if i have misled above.. i had £250 in an account for a few years, but then dropped to £100 a few years back. didn't realise that was no longer an option.

  2. #12
    Junior Member Steve15
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    From the Telegraphs website
    Savers warned as building society battles for survival













    Sponsored by Telegraph Energy Switching

    Savers with one of Britain’s regional building societies have been warned to ensure that their balance is within the official compensation limit as the mutual battles for survival.
    Manchester Building Society has said there is “material uncertainty” over its future and has written to customers whose balances exceed the £75,000 limit covered by the Financial Services Compensation Scheme (FSCS) to alert them to the danger.
    Such customers account for a relatively small proportion of the mutual’s 18,000 savers, a spokesman said. This is partly because the society has for some time imposed an upper limit of £75,000 on the amount that can be held in some of its accounts.
    Manchester’s troubles stem from changes it made in 2013 to the accounting treatment of its long-term mortgage book and related interest rate “hedges”. As a result of the hit to its balance sheet, it stopped advancing new mortgages and has been shrinking its savings business as the need to fund mortgage lending has lessened. It still has about 4,000 borrowers.
    The society hopes to return to health either through a capital injection from “other parties” or by merging with another society – the traditional route for mutuals that fall into difficulty.
    Savers are not the only individuals who would be affected were the society to fail. Private investors are likely to be among the holders of two series of “Pibs” – permanent interest-bearing shares, a type of bond – issued by Manchester.
    However, the 6.75pc bonds were trading today at about “par” or face value, while the 8pc series was trading at about a 19pc premium to par, indicating that holders were untroubled by the society’s difficulties.
    A trader at a stockbroker that deals in Pibs said: “Manchester Building Society has been one of the weakest in the sector for some time and the negative results have been fairly well flagged. Any nervous holders are likely to have already sold their holdings in one of the previous sell-offs.
    “Also, the small issue sizes of £10m for the 6.75pc Pibs and £5m for the 8pc Pibs mean that there aren’t many holders. It could be that not many have seen the results yet or that those who have aren’t hugely concerned. There is of course the possibility that Manchester Building Society is taken over by a stronger competitor.”
    Manchester Building Society said in its results for 2015, released today: “The long-term continuing operation of the society and the group is dependent on successfully returning to lend to grow the balance sheet in order to maintain profitability and rebuild regulatory capital. At present the society has insufficient capital to return to lending and continues to manage a long-term run-off of the balance sheet.
    “The board is developing a number of options which individually or in combination are reasonably expected to secure the future of the society, enable it to continue to meet capital requirements and improve the quality of its regulatory capital. These options include improving its capital position, including through a capital injection from other parties, or securing its future through merger or alternative means.
    “The board expects to develop these plans over the next few months. These plans may involve third parties and as such carry execution risk. Whilst an assessment of the different options has not yet been completed the board is satisfied that it is reasonable to expect a successful outcome.
    “Although these represent material uncertainties which may cast significant doubt about the society’s and group’s ability to continue as a going concern in the longer term, in the board’s opinion the going concern basis is appropriate.”
    Discuss with the author on Twitter: @richardevans10

  3. #13
    HB
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    Results here.

    54 members of staff?!

    They had to write down the value of their property by £2.5m, and have set aside another £1.5m for 'customer redress' for 'non-compliance'. and there could be more:

    There is a risk that other aspects of the Group’s business might be considered as not having been conducted in accordance with all relevant regulation, or the fair and reasonable treatment of customers. It is also not possible to rule out the possibility of other instances of non-compliance with CCA or other regulations which have not been identified. No provisions against these risks are included in these accounts.
    (my emphasis)
    Last edited by HB; 15th April 2016 at 10:00 PM.
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  4. #14
    HB
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    The interim CEO Hodges resigned, and was replaced by a new interim CEO Lynch, in June.

    Hardly a stable outfit.

    However they have launched a 45day account paying 1.36% from £1k for those that are interested.

    2016 AGM results here
    Last edited by HB; 21st June 2016 at 08:35 PM.
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  5. #15
    Expert planteria will become famous soon enough
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    it's not a bad account HB.. i'm just about sticking with 1.2% instant access from YBS.

  6. #16
    Contributor rufushunt will become famous soon enough
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    yes, only really beaten by the current accounts !
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  7. #17
    Contributor EarthBoy is an unknown quantity at this point
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    Bad news for holders of Manchester BS's PIBS now:

    http://www.telegraph.co.uk/investing...over-interest/

    "Investors who own ?permanent interest-bearing shares? or Pibs issued by Manchester Building Society are unlikely to receive their next interest payment, the mutual has said."

  8. #18
    Moderator LinoSack
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    It seems to be getting worse for them and yet no plan has emerged. I wonder whether in these straitened times it's harder than it used to be to find another BS prepared to stage a rescue 'merger'.

  9. #19
    HB
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    Greetings Lino

    Nobody really wants their customer base I guess.
    Nearly the end of September and no 6 month accounts yet
    Sterling Forever.

  10. #20
    HB
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    Results for 6 months now declared.

    No PIBS interest payments to be made October, and the same for April 2017, for those who hold them.

    Things are getting worse. Loss of ?1.4m, they made a profit of ?2m in the same period last year.
    Assets fallen a further 9% since year end
    Loans to customers down 5%, shares down over 7% in 6 months

    Reserves diminished by ?1.7m

    An increase in impairment provision of ?1.4m now stands at over ?19m

    “The Board is continuing to explore a number of options which individually or in combination aim to secure the future of the Society.....”

    Been saying this sort of thing for a while now, with no change
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