Principality profits down

Lynt_3

Principality's profits halved this year.
Mum and I have savings with them.
Should we be worried??

dwsjarcmcd

In a word, no. If there are some serious issues on their balance sheet (which there may well be via Nemo, their unsecured lender) then the 'white knight' of the Nationwide will save the day!

David

Lynt_3

Thanks David.
It is such a worry for us, as we're not experienced in all this savings malarky

Your words are very comforting.

Lyn (and mum)

dwsjarcmcd

Lyn,
Try not to worry too much, remember you and your mum have 100% protection up to £35k each via FCS. If you have more than that, you may want to spread your savings around.

David

edwinac_2

Lynt wrote: »

Principality's profits halved this year.

That shrill headline comes from the BBC.

"Dear Old Auntie" is just working to the bankers' script, doing her bit to undermine the mutual sector on behalf of the financier-oligarchy.

The other news reports are much more upbeat about the Principality..

The headline from the Western Mail reads:

Principality 'in good shape' after record savings

While the specialist periodical, Mortgage Strategy, reads

[G]roup assets have increased by £437.0m to £6,289.5m.

Lynt_3

Thank you edwinac.
Last night on the BBC Welsh news, Principality were sounding upbeat, but I guess they don't want to scare us.
There are so many scare stories around, it is easy to get nervous :eek:

Mum has more than £30,000, but she is reluctant to move any elsewhere. I hope she will be ok.

baby_boomer

At least Principality is still making some profit, unlike some other building societies .

We only know about Principality's profits demise because they publish half year figures.

We won't know about the 2008 performance of the vast majority of building societies until March 2009, because most only publish annual figures.

For instance, we would never have known that the Derbyshire and Cheshire were making half year losses if they hadn't decided to give up the ghost and let themselves be taken over by Nationwide - requiring the publication of their figures to June 2008.

On a slightly negative note, Fitch has recently downgraded the Principality's credit rating - so their performance should be monitored going forward. They have branched out into a number of non-core fields including commercial property.

Lynt_3

baby_boomer wrote: »

On a slightly negative note, Fitch has recently downgraded the Principality's credit rating - so their performance should be monitored going forward.

Oh dear. How worrying is that??
Having even just a few quid is a headache isn't it.

Thanks for your input baby_boomer.

bo_drinker

Off topic slightly, I have an account with Principality and they must be the only B S left that do not have the hole in the wall as such, still the old savings book. I only went with them as I thought they would be swallowed up by one of the big players and I may have been quids in. But it is ironic that it is the big ones struggling now.