The Building Societies Association is the voice of the UK’s building societies.The Building Societies Association isthe voice of the UK’s building societies.The Building Societies Association isthe voice of the UK’s building societies.The Building Societies Association isthe voice of the UK’s building societies.The Building Societies Association isthe voice of the UK’s building societies.The Building Societies Association is

Building Society: and proud of it

Robin FiethChief Executive

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© 2017 The Building Societies Association (BSA)

A BSA Manifesto for the General Election

3 May 2017 BSA Annual Conference 2017

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© 2017 The Building Societies Association (BSA)

Three General Election commitments

BSA Annual Conference 2017

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3 May 2017

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© 2017 The Building Societies Association (BSA)

An extraordinary past; an extraordinary future

3 May 2017 BSA Annual Conference 2017

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© 2017 The Building Societies Association (BSA)

Growing

BSA Annual Conference 2017

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3 May 2017

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© 2017 The Building Societies Association (BSA)

The UK’s largest membership network

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Number of members, millions

BSA

19.2

3.1

21.1

3.5

21.4

3.6

Investing members Borrowing members

2014 2015 2016

3 May 2017

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© 2017 The Building Societies Association (BSA)

Taking mortgage market share

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BoE, BSA

3 May 2017

16%

17%

18%

19%

20%

21%

22%

0

2

4

6

8

10

12

14

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2012 2013 2014 2015 2016

% share of balances

Net lending,£billion

Building societies Total market Building society share of outstanding mortgages

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© 2017 The Building Societies Association (BSA)

Societies provide one in three first time buyer loans

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CML RMS

0%

5%

10%

15%

20%

25%

30%

35%

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

32%

3 May 2017

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© 2017 The Building Societies Association (BSA)

Building a savings culture

3 May 2017 BSA Annual Conference 2017

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60% of children’s

savings accounts on the market are

from building societies

Savingschampion:More buildingsociety variable

rate accounts paymore thanBase Rate

Higher effective interest rates:

Time deposits; MFI series from BoE, Building societies from BSAOver 40% of balances in cash Junior ISAs are

held with building societiesIn most cases savers can open an account

with just £1

81%

56%

Building societies

Banks

MFIs

Building societies

0.0

0.5

1.0

1.5

2.0

Jan-16 Dec-16

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© 2017 The Building Societies Association (BSA)

Reinvesting profits for the benefit of members

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0.00

0.05

0.10

0.15

0.20

0.25

0.30

0.35

0.40

0.45

0.50

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

Retained surplusas % of average assets

BSA

3 May 2017

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© 2017 The Building Societies Association (BSA)

Better rates: better capitalised

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19.2%

12.2%

15.6%

Building societies Big Banks Challenger Banks

Average CET1 ratios

2015 2016

BSA

3 May 2017

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© 2017 The Building Societies Association (BSA)

Building society through employment

BSA Annual Conference 2017

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BBA, BSA

40

50

60

70

80

90

100

110

120

2010 2011 2012 2013 2014 2015 2016

Index

Number of people employed

Building societies

Banks43,000

building society

employees

3 May 2017

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© 2017 The Building Societies Association (BSA)

Dynamic

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3 May 2017

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© 2017 The Building Societies Association (BSA)

Newcastle Building Society: Yarm Library Branch

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3 May 2017

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© 2017 The Building Societies Association (BSA)

Nationwide Building Society: Glastonbury Branch

BSA Annual Conference 2017

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3 May 2017

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© 2017 The Building Societies Association (BSA)

Forward looking

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3 May 2017

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© 2017 The Building Societies Association (BSA)

Lengthening the ladder

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3 May 2017

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© 2017 The Building Societies Association (BSA)

Modern methods of construction

BSA Annual Conference 2017

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3 May 2017

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© 2017 The Building Societies Association (BSA)

Proximity to members

BSA Annual Conference 2017

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3 May 2017

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© 2017 The Building Societies Association (BSA)

A force for good in financial services

BSA Annual Conference 2017

203 May 2017

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© 2017 The Building Societies Association (BSA)

Negative assurance: few complaints

3 May 2017

21

Building societies had 12% of Home Finance complaints, but

hold 22% of mortgages

FCA Complaints Statistics,H2 2016

…and the Ombudsman upholds complaints against building societies

less often than other providers:

16%

resolved against

societies

40%

resolved against banks

BSA Annual Conference 2017

FOS, H2 2016

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© 2017 The Building Societies Association (BSA)

Positive assurance: real experiences

3 May 2017 BSA Annual Conference 2017

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My provider provides goodcustomer service

My provider offers competitiverates

I can trust my provider to act inmy best interests

I would recommend myprovider to my friends and

family

Any comments /feedback Igave would be listen to and

acted upon

My provider makes me feel asthough my business is valuable

to them

I feel as though my providertreats me fairly as a customer

% agreeing for their providerBuilding societiesOther providers

60%

100%

YouGov, 2,088 adults surveyed online 24-25 January 2017.

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© 2017 The Building Societies Association (BSA)

Leading the way in trust and fairness

3 May 2017 BSA Annual Conference 2017

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Prof James Devlin, Centre for Risk, Banking and Financial Services,University of Nottingham

Building societies

Banks

-40

-30

-20

-10

0

10

20

2009 2015

Trust Index

-40

-30

-20

-10

0

10

20

2009 2015

Fairness Index

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© 2017 The Building Societies Association (BSA)

Customers as members

BSA Annual Conference 2017

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I prefer to deal with businesses that aim to generate benefits for

groups of "stakeholders" (customers, employees, suppliers, community, etc.), as well as their

external investors.

YouGov, 2,088 adults surveyed online 24-25 January 2017.

49% agree

9% disagree

3 May 2017

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© 2017 The Building Societies Association (BSA)

An extraordinary future

BSA Annual Conference 2017

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3 May 2017