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D BUILDING SOCIETY

D Extracts from the Review of the Society's operations during the year 1964, by the President, Mr. C. J. Dunham, at the

Annual General Meeting in London on 27th March, 1965 0

0

El

The Intake of Savings 0

The Society made further substantial progress in 1964. The mansion in assets, receipts from investors and the total amount advanced to house purchasers were all higher than in any previous year.

Receipts from investors amounted to the substantial sum of D £741 million, or £101 million more than in 1963. 0

At the end of last year, the average shareholding in the A

Society was £547 and the average deposit £752. These averages,

1111 however, conceal wide differences in the size of the investment account balances. The Society serves both small savers and 0

substantial investors, facilities being provided for persons able to save only the most modest amounts as well as for those in a

D position to invest sums of up to £5,000.

I can give some additional facts and figures to illustrate the CI

contribution made by the Society over the last two decades in 0 the encouragement of personal savings. At the end of 1944, there were 113,000 shareholders and depositors on the 0 Society's books. Ten years later this number had increased to 218,000 and at the end of last year to 560,000. The number of

investors in the Society has thus risen almost five-fold in 20 0 D years. Total savings with the Society increased almost nine-fold,

D from £35 million to £309 million during the same period.

0

CI Record Mortgage Lending 0

0 The pressure of demand for mortgages was maintained through- ,___O

0 out 1964. The total amount advanced on mortgage was raised 1-1 0 from £61 million in 1963 to a record £711 million in the year - •

0 under review. In all, over 27,000 loans were completed during the year, almost all to persons purchasing dwelling houses for their own occupation. Over 10,500 loans were made on newly- built properties; the Society thus financed approximately 5 per cent of all dwellings erected for private purchasers in the United Kingdom last year. 0

D After deducting repayments and allowing for mortgage 0

interest, the total amount due to the Society on mortgage rose 0 • by £351 million during 1964 to exceed £297 million on Decem- 0 her 31st. The Society's mortgage assets are spread over 0 0 properties of all types, and situated in all parts of the United

D Kingdom. At the end of the year, there were just over 198,000 9 borrowers and the average debt amounted to slightly more

than £1,500.

0 Since the the Second World War the Society has end of

P 375,000 loans, involving •

granted over mortgage a total sum of 1-1 Li almost £528 million. This is the measure of the Society's b, CI contribution to the remarkable growth of home ownership

since 1945. 0

Liquidity, Reserves and Assets 0 D The higher lending programme last year was partially financed

by a planned reduction in the Society's holdings of cash and

. investrnents. This form of support for mortgage lending is of a 0

'once for all' nature. Once the liquidity ratio has reached the 0 ID minimum considered prudent, future lending has to be financed 0 ID from the inflow of funds from investors and from capital sums D repaid on existing mortgages. 0 0

0On the subject of the Society's investment portfolio, I would 0 draw your attention to the substantial capital profit of £1.72 0

million made last year by the sale of quoted investment hold-

P. ings. This has made possible a larger than usual allocation to H reserve. The Society's reserve funds have risen from £101 0 bi million at the end of 1963 to £12 million at the end of 1964.

• The year's operations resulted in the Society's assets rising

0 by £351 million to total just over £347 million on December 0 El 31st. The rate of growth was thus 11.4 per cent which was 0 u slightly higher than in the previous year.

0 CI CI

CO-OPERATIVE PERMANENT BUILDING SOCIETY --..—.— 9 9 NEW OXFORD HOUSE, LONDON, W.C.1 Shares end Deposits in this Society are Trustee Investments ; ■ 0 ID CI Member ot the Building Societies Association 0

again makes a total of 2s. 4d. This makes an effective increase of lid., as a one-for-five scrip issue followed the 1963 interim. Higher demands in royalties from Middle East governments and higher overseas taxation have slightly reduced the group net profit to £82.5 million. Until the question of the application of the proposed cor- poration tax is ironed out regarding oil com- panies, investors are faced with a possible reduction in dividends or a cut in much-needed profit retentions. BP £1 shares at 52s are yielding 7.8 per cent. As I mentioned in these notes last week, I would rather hold Burmah Oil, BMC

Mr. George Harriman, chairman of BRITISH MOTOR CORPORATION, expects sales for the year ending this July to exceed £500 million. This would show an increase of £50 million on the Previous year. This could very well indicate a Tut novel.

Net Profit (before Tax) Net Profit (after Tax) ... ..• Preference Dividend— Net ...

Ordinary Dividend — Net Capital Employed at 30th Sept.

Issued Capital at 30th Sept. ...