25 April 2008
AGM message reinforces Saffron Building Society's prudence
Saffron Building Society has said prudent financial planning and engagement with local people will protect members during the current economic downturn.
Speaking at the Society's AGM on April 22, Chief Executive Andy Golding said Saffron's business model would withstand fall-out from the global credit crunch.
Andy Golding's presentation to a well-attended meeting explained that the Society's status as a mutual meant that its reliance on inter-bank lending was minimal, and the Society had good levels of liquidity. As of 31st December 2007, its retail savings balances of £643 million were more than its mortgage balances of £589 million.
Members were also told of the Society's strong capital position of £47 million as at 31st December 2007.
Andy Golding said the Society's mortgage portfolio was balanced, and included prime residential and buy-to-let loans on property. He said the Society's robust stress testing methods, calculated against a possible UK-wide 40 per cent drop in house prices plus arrears and repossession demonstrated the Society's ability to weather the most adverse market conditions.
Andy Golding told members that their money was in safe hands, and that despite the Society's healthy profits of 2007, it would not become complacent.
"We are in this business to plan prudently and protect our members' assets at all costs," he said. "Our mutuality, careful planning and engagement with our members and our local community will continue in 2008 and beyond."
Andy Golding said charity donations remained an important part of the Society's ethos. He welcomed to the AGM puppies Saffie and Ronnie who the Society have sponsored for the Guide Dogs for the Blind Association, as part of its yearly £10,000 donation to a deserving local charity.
"The Society is delighted to have played a part in the breeding, raising and care of Saffie and Ronnie through our donation. The puppies are being trained as guide dogs, and it won't be long before they are helping two partially sighted or blind people in our community lead full, independent lives."
Mr Golding said the Society was looking forward to sponsoring another deserving charity in 2008.
"Helping those in our community to help others reinforces the Society's ethos of community engagement. We will be shortly accepting applications from local charities for the 2008 £10,000 donation. Charities have until July 11th to get their applications in."
Members had the opportunity to meet 2007 guide dogs of the future, Saffie and Ronnie after the presentation and question time.
Mr Golding said he had welcomed and enjoyed the opportunity to talk to members at the AGM.
"We encourage all our members to get involved and express their views and concerns, and the AGM is the ideal forum for this."
