Mutual Building Societies Hit By Compensation Levy
Published / Last Updated on 23/02/2009
Mutual Building Societies Hit By Compensation Levy
Two mutual building societies, Skipton Building Society and Norwich & Peterborough Building Society have revealed that impact cost of failed banks and compensation payments has hit profits.
Skipton’s profits were down from £164m to £22m and it blamed its exposure to Icelandic Banks, in simple terms, reinvesting savers funds in a bank that then collapsed resulting in huge losses and a hike in its contribution to the Financial Services Compensation Scheme (FSCS) fund.
Norwich & Peterborough’s profits were down to £6m and they also blamed a £5.5m contribution to the FSCS.
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