Media Centre
Mutual sector lending and savings figures for January 2010
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Date:
1 Mar 2010
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Important media note: From 1 March 2010, in relation to data for the month of 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 periods. For more information about this change please see http://www.bsa.org.uk/feature/mutual_stats.htm
Mutual sector lending and savings figures for January 2010
The value of mutual sector approvals in January was £0.8 billion, and gross lending was £1.0 billion.
Commenting on the lending figures, Adrian Coles, BSA Director-General, said:
“Although it is not possible to compare lending figures in January to previous periods it is evident that activity was subdued and this has been felt by all lenders. Low activity in the month was expected following the surge of buyers aiming to beat the end of the stamp duty relief in December. The adverse weather conditions experienced at the start of the year have further suppressed market activity.”
In the savings market balances held in savings accounts at mutual institutions fell by £481 million in January. Excluding interest credited to accounts, mutuals had a net withdrawal of £755 million.
Commenting on the savings figures, Mr Coles, said:
“January is typically a challenging month for savers as many start to repay debt accumulated over Christmas. Nonetheless, mutuals will continue to find it difficult to attract savers as long as the Base Rate remains low and the market is distorted by part nationalised banks. We welcomed the announced removal of Northern Rock’s 100% guarantee on savings, and we will continue to lobby for further reform until we achieve a level playing field for all deposit taking institutions.”
Mutual statistics January 2010
Data below are not seasonally adjusted.
• Mutuals’ gross lending amounted to £1,039 million in January 2010.
• Net lending by mutuals in January 2010 was - £819 million.
• Approvals by mutuals in January 2010 were £832 million.
• Mutuals had a net withdrawal of £755 million in January 2010.
• Mutuals had a net withdrawal of £180 million from Cash ISAs in January 2010.
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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 52 UK building societies. Mutual lenders and deposit takers have total assets of over £390 billion and, together with their subsidiaries, hold residential mortgages of almost £260 billion, 21% of the total outstanding in the UK. They hold over £250 billion of retail deposits, accounting for just under 23% of all such deposits in the UK. 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
