West Bromwich Building Society - Are they linked to anyone?

freeasabird

Trying to spread my money around so I'm looking at the West Bromwich Building society Stratus account. Are West Bromwich linked to anyone and are they ok in terms of customer service? Thanks in advance for any information.

Speculator

Yes, West Bromwich football club.

slouise

Hi Freeasabird

no they are not linked to anybody and there arent going anywhere your quite safe, nothing to worry about, no talks to merge either.I work on an application line for them - stratus

Hope that helps

Speculator

Seriously, they are not linked to anyone and but customer service is not the best.

minstral

slouise wrote: »

Hi Freeasabird

no they are not linked to anybody and there arent going anywhere your quite safe, nothing to worry about, no talks to merge either.I work on an application line for them - stratus

Hope that helps

Your having a laugh. I'm off to Paddy Power to bet on them being next. Let's look at the facts :-

High Concentration of loan book (24%) to buy to let market. Mainly originated/bought from GMAC, who originated for B&B. This BTL product is what caused B&B to rack up such high arrears on their book.

Further High Spread to Commercial Lending - Around 20% of the book, and by way the highest in the sector. Look at the write-downs the banks have made in this sector, with commercial property prices dropping off 20% in the last 18 months. Expect provisions here. They have now shut to BTL & Commercial, making staff redundent.

High cost of funding - Having to pay 6.56% to attract retail deposits to fund themselves - way above market costs. Lending on new products at 5.7% ish - so losing money on all new advances. Having to lend money though, because of that high Commercial Lending ratio. If the residential book contracts, then the Commercial percentage goes up, and they break all of their regulatory ratios!!!!

One of the highest Cost Income ratios in the sector of around 55%.

2 Securitisations of Commercial Loan books now approaching 5th Anniversary, which will lead to further higher cost of funding, based on the terms that it was agreed. No chance of cheap refinancing in the present market.

Recent downgrades by ratings agencies.

A Building Society has never gone bust, so it is my opinion that it will be taken over soon. I think anyone's money is safe (or as safe as can be expected) but it is my opinion that this one will end up in the arms of Nationwide soon (as widely reported in today's press).

1882

slouise wrote: »

Hi Freeasabird

no talks to merge either.I work on an application line for them

The Sunday Express says Nationwide want to swallow them and the Britannia up - wonder if account holders would be in line for a wee windfall (this always used to be the case but these days.............).

minstral

Depends how its done.

In the Daily Mail the CEO of Nationwide said that the FSA effectively forced the Cheshire & Derbyshire to them, and there could not be a vote/windfall due to timing etc.

If Britannia or West Bromwich are "merged" on the same basis then it would be difficult to see a payout. If it was a "proper" meger though, like Portman for instance, then there would be a pay-out.

Don't forget though since The Butler forced through so many de-mutulisations, many of the accounts & mortgages waive the right to a payout. Not sure what the status is with these 2 mutuals.

minstral

Looks like the beginning of the end to me.

Shock of Chief Exec resigning today. New Chief Exec 59 years old, coming out of retirement. Last job was to reverse Portman into Nationwide. Having "googled" The Times report 24/10/2007 that he is a fan of Building Society amalgamations!!

This is exactly the same way that B&B went, with the appointment from semi-retirement of Richard Pym, before being swallowed up just 3 months later.

investor7_2

Can any one help. I have a West Bromwich stratus account however two things bother be about it.
Firstly they appear not to issue pass books and all they sent me when i opened the account was a letter confirming what i had deposited in there by cheque when i opened it.
Secondly, i have since deposited more money into it by BACS but they have sent me no acknowledgement of it. I have called them and they say that this is quite normal and if i want to know my balance then i simply have to ring them and ask. This seems all very casual.
Incideatally i would agree with one post which says that their customer service is not particularly efficient.

baby_boomer

To anwer the OP's question, AFAIK West Bromwich is about the only independent financial institution in the country that has never merged with any other organisation.

I've had brilliant customer service from my local branch - often getting straight to the counter when the Nationwide queue has reached outside their doors.

The C- rating from Moody's is a bit of a concern. And don't be surprised if West Brom's capital base is even strengthened by the government in the near future.

The appointmen of Robert Sharpe as CEO is the start of the death rattle IMHO.

But hey, on MSE we chase the best rates, secure in the knowledge that the government is our rock .

Does West Brom actually HAVE any best rates ?

Speculator

Head office customer service is not good. It took them over two weeks to open my Stratus account, although they did back date my interest.