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I speculate that if these results had come from other businesses that have been more vulnerable to the current tough business environment , then we might have seen various chief executives doing cartwheels down Bath ’ s Milsom Street . Thankfully , my ageing back has been spared any celebratory gymnastics !
BBS is a mutual business that is owned by its customers . When customers open savings accounts or take out mortgages with BBS , they automatically become ‘ Members ’ of the Society . My job , and those of my fellow 73 colleagues , is to put our Members interests at the heart of our decision making .
Unlike corporations who can issue shares to raise new capital , small mutual organisations such as BBS have to rely on retained earnings to achieve this purpose . Profit generation ( and hence new capital generation ) is necessary to underpin future
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asset growth and to ultimately protect savers from incurring financial losses ; if ever the Society faces a severe economic stress . Being in the somewhat luxurious position of having one of the strongest capital ratios in the building society sector , and with the absence of shareholder pressure to maximise the payment of dividends , BBS is under far less short-term pressure to generate profits than most other businesses .
“ BBS has a social purpose that is greater than just making money ”
This allows the Society to prioritise the protection of its savers and borrowers ahead of maximising profits and it also gives it greater flexibility to take investment decisions . Our strengthened profitability is
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very welcome , but there is much more to BBS than the pure pursuit of high returns .
BBS has a social purpose that is greater than just making money . It exists to change the lives of its Members by encouraging saving as a means for them to achieve financial security and by advancing loans to them to enable their dreams of achieving home ownership . I believe that it is the achievement of these loftier goals , which make ‘ a real difference ’, that get me out of bed in the morning and which make working for BBS so special .
The Society is investing in its people , its technology and its processes in order to improve the experience that our customers get when they do business with us . We have recently introduced a Mobile App that provides customers with a further option as to how they can transact with us . This places BBS amongst a handful of building societies
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that can offer this functionality . We have also improved our online affordability tool to support applications from our mortgage intermediaries . Having made a big effort to improve the handling of a growing number of customer enquiries , our reviews from customers are exceptionally strong .
Investing in the local Bath community is part of the DNA of BBS . A few of our recent initiatives include an expansion of our investment in financial education within schools , small charities and for local tree planting . Every BBS colleague can spend one day per year supporting local charity work and we have introduced a matched fundraising scheme to support our colleagues who wish to raise funds for the Society ’ s Charity of the Year .
I am of the firm belief that by focussing on making a difference in these areas , future profits will look after themselves .
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