On 22nd October 2008 we announced our plans to merge with Barnsley Building Society. The proposed merger is an extremely positive development for the members of both the Yorkshire and Barnsley Building Societies, as we each have a shared commitment to mutuality, staff and their local communities.
The Barnsley is a well managed, solid building society with a strong level of reserves. However, it has an exposure to two Icelandic banks that may require a write-off of up to £10m. The current exceptional situation in Iceland and the full extent of the repercussions were beyond anticipation. The amount of the exposure could be fully absorbed by the general reserves held by the Barnsley, however, its board has determined that the long term interests of its members would be best served by a merger with the Yorkshire.
“This merger is a further step in demonstrating the strength of the mutual sector in the UK, with complete certainty to customers maintained at no cost to the taxpayer. I am delighted that the Yorkshire’s strong financial position enables us to provide assurance to the members of the Barnsley, as well as preserving its local character.
"Yorkshire members will benefit from the Barnsley’s strong funding position and very high quality mortgage book, as well as strengthening even further our position in our heartland area.“
The Yorkshire, which has its head office in Bradford, is the UK’s third largest society with more than 1.9 million members, 136 branches, 64 agencies and total assets of over £20bn*. It has a low risk business model with excellent capital strength, high levels of liquidity and a solid retail funding base.
The Barnsley is the UK’s 34th largest building society with around 60,000 members, 8 branches and total assets of £376m*. The Barnsley has a very high quality mortgage portfolio and a strong retail funding base.
Yorkshire members will benefit from the Barnsley’s strong funding position and very high quality mortgage book, as well as strengthening even further Yorkshire’s position in the its heartland. This merger is also a further step in demonstrating the strength of the mutual sector in the UK, with complete certainty to customers maintained at no cost to the taxpayer.
It is anticipated that the merger will complete on 31st December 2008, subject to it being confirmed by the Financial Services Authority.
In the meantime if you have any further queries please call the Merger Helpline on 0800 138 2409. Lines are open Monday to Friday 9am – 7pm, and Saturday 9am - 1pm. All calls may be monitored / recorded to improve the quality of our service and for your protection and security.
* As at 31st December 2007
Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, credit cards, loans, mortgages and more.
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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).
