West Bromwich Building Society Distribution Announcement CCDS (0260A)
May 27 2021 - 3:07AM
UK Regulatory
TIDMWBS
RNS Number : 0260A
West Bromwich Building Society
27 May 2021
27 May 2021
Distribution Announcement
West Bromwich Building Society
Core Capital Deferred Shares (GB00BYWR8Q80)
The Society announced its full year results today, reporting a
profit before tax of GBP4.7m, GBP3.2m higher than for the same
period in the prior year . However, profit levels remain lower than
our expectations at the time of the Liability Management Exercise
(LME) undertaken in April 2018, primarily reflecting the current
economic and operating environment.
The Society maintained the Interim Distribution for the period
to 30 September 2020 at GBP0.50p per CCDS, which was paid in
February 2021, and indicated an update would be provided alongside
the full year results as the outlook became clearer. In the context
of the continuing uncertain outlook for the UK economy, the Board
would like to provide updated guidance on its current expectation
for the final CCDS distribution for August 2021 (the 'Final
Distribution'). Although profit levels have remained below the
levels envisaged at the time of the LME, the Society has maintained
its capital strength with a CET1 ratio of 16.4% as at 31 March
2021. Taking account of these and other relevant factors, and
considering the interests of the Society's members as a whole, the
Board expects to increase the Final Distribution to GBP0.75p per
CCDS.
Looking ahead, significant uncertainties remain for the economy,
and any recovery is dependent on the evolution of the coronavirus
pandemic as well as the speed and efficacy of the vaccination
programme both in the UK and globally. Given these ongoing
uncertainties the Board is not in a position to set out its
expectations for a revised future path of distributions beyond the
expected Final Distribution for August 2021. The Board will assess
the appropriate level of future distributions as the year
progresses and anticipates a further update around the time the
Society announces its Interim Results for the period to 30
September 2021.
The Board's objective remains to increase distributions over
time up to a semi-annual GBP2.25p per CCDS, being the level
distributions were expected to rise to in the original CCDS
Distribution Policy dated 10 April 2018. Under normal conditions,
once distributions reach this level the Board then intends to adopt
a stable distribution policy, subject to the Society's then-current
and anticipated financial position being viewed as satisfactory and
any other factors considered by the Board to be relevant.
Market Abuse Regulation
This announcement is released by West Bromwich Building Society
(the Society) and contains information that qualified or may have
qualified as inside information for the purposes of Article 7 of
the Market Abuse Regulation (EU) 596/2014 (MAR), encompassing
information relating to the Society's CCDS as described above. For
the purposes of MAR and Article 2 of Commission Implementing
Regulation (EU) 2016/1055, this announcement is made by Ashraf
Piranie, Group Finance & Operations Director of the
Society.
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END
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