145th Annual General Meeting

2013

23/04/2013 1

23/04/2013 2

Stuart Young

Chairman

• Welcome

• Apologies for Absence

• Minutes of the 144th Annual General Meeting

• Matters Arising

23/04/2013 3

Tony Wilmot

Finance Director

• Annual Accounts and Annual Business Statement for the

Year Ended 31st December 2012

Progress in 2012 – Income & Expenditure - The underlying financial

performance of the Society has been strong. Management expenses remain the

lowest in peer group with productivity improvements containing costs.

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2012 2011

£000s £000s

Income

Net Interest Receivable 1,514 1,549

Other Income 93 73

Total Income £1,607 £1,622

Costs

Management Expenses (including

depreciation) 1,250 1,190

Mortgage Provision (5) 201

FSCS levies 101 50

Total Costs £1,346 £1,441

Net Profit before tax 261 195

Tax (55) (43)

Net Profit £206 £152

Progress in 2012 – Balance Sheet – Strong balance sheet with growth in the year of 3.36%. Record year for Prime Residential lending resulting in growth in total mortgage balances of 7.25%. Adequate capital to underpin growth going forward.

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2012 2011

£000s £000s £000s £000s

Assets

Liquid assets 47,813 50,891

Mortgage balances 131,280 122,411

Less: Provisions (1,043) 130,237 (1,143) 121,268

Fixed assets 1,121 1,226

Other assets 307 266

Total Assets £179,478 £173,651

Liabilities

Shares and Deposits 164,641 161,570

Owed to credit institutions 2,508 167,149 0 161,570

Other liabilities 439 399

FSCS provision 151 102

Subordinated debt 2,750 2,750

Revaluation reserve 487 540

General reserve 8,502 8,290

Total Liabilities £179,478 £173,651

23/04/2013 6

Stuart Young

Chairman

• Chairman’s Statement

• Receive the Annual Report and Accounts and Auditors

Report

• To consider, and if thought fit, pass an Ordinary

Resolution to appoint KPMG LLP as auditors until the

conclusion of the next Annual General Meeting

23/04/2013 7

Stuart Young

Chairman • To consider the following Ordinary Resolutions for the

election of directors:

• 4 (a) To re-elect Michael Anthony WILMOT

• 4 (b) To re-elect Brian YOUNG

• 4 (c) To re-elect Richard Michael MILES

• 4 (d) To re-elect Stuart Leslie YOUNG

• 4 (e) To elect Michael Richard HEENAN

23/04/2013 8

Stuart Young

Chairman

• To approve the Directors Remuneration Report

23/04/2013 9

Peter Myers

Chief Executive

• Vision

• Strategy

• How the Society works

Vision

To be a strong independent mutual, that is

trusted and respected by members and non-

members, because we offer straightforward,

value for money products, that are easy to

understand, and are supported by an

unrivalled level of personal service.

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Strategy

• As an independent Building Society we will provide a safe and trusted place for members to save.

• These savings will be used to provide residential mortgages, so that members can buy a house, or improve their existing home.

• Our strategy will be underpinned by an unrivalled level of personal service.

• Bonuses will be not be paid to any staff

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How the Society Works

• Capital

• Savers

• Mortgagees

23/04/2013 12

How the Society Works The Society has 3 main components to its business:-

2. Saver Members (Lend money to the Society)

3. Mortgage Members (Borrow money from the Society)

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1. Capital (Money for a ‘rainy day’)

How the Society Works

Capital (Money for a ‘rainy day’)

• A minimum amount of money and assets must be set aside

• These are to cover unexpected events

• The Society has £8.5m in Reserves

• All of the Society’s net profits are used to increase Reserves

• We have no shareholders to pay

• We do not pay bonuses to staff

23/04/2013 14

How the Society Works

Saver Members (Lend money to the Society)

• Members who deposit their savings with the Society are ‘lending’ their money

• In return the Society pays these members interest

• The Society offers straightforward products and avoids confusing ‘special offers’

• We always try to be as competitive as possible

23/04/2013 15

How the Society Works

Mortgage Members (Borrow money from the Society)

• The Society uses the money from savers to lend via mortgages

• Borrowing members take out mortgages to buy homes

• In return they pay interest to the Society

• This money is used to:-

– Pay interest to savers

– Cover the running costs of the Society

• Any spare money is profit and this is used to increase capital

• Capital must increase by a minimum amount each year in order to

assure the long term future of the Society

23/04/2013 16

How the Society Works

Challenges

• The market is very competitive

• The government has increased competition in the mortgage market leading to reduced rates

• This reduces the rates that can be paid to savers

• Financial institutions are being told to hold more capital

• This means the Society must make more profit

• The need to make more profit effects the rates that can be paid to Savers

The good news……….

23/04/2013 17

How the Society Works

Good News

• Your money is safe with the Beverley Building Society

• We are completely independent which means that £85,000 of every members savings (so £170,000 for joint accounts) are guaranteed by the Government

• We promise that we will always offer consistently competitive rates

• We take a conservative approach

• We don’t pay bonuses

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23/04/2013 19

Questions?

23/04/2013 20

Stuart Young

Chairman

• To transact any other business permitted by the Rules of

the Society

• Chairman’s Closing Remarks

23/04/2013 21

… a strong independent mutual