Industry Analysis & Industry Trends
The industry has returned to growth during the past five years after suffering steep declines during the financial crisis. Between 2008-09 and 2009-10, revenue almost halved due to collapsing demand for loans, tighter lending standards and falling retail deposits. Nevertheless, building societies weathered the financial crisis relatively well compared with the banking industry, which required massive government bailouts. This reflects the fact that building societies are more risk-averse. However, the industry has expanded during the past five years, since government initiatives introduced to stimulate the housing market, low interest rates and rebounding economic conditions have stimulated demand for residential mortgages. Revenue is expected to increase at a compound annual rate of 2.2%... purchase to read more
Industry Report - Industry Analysis Chapter
After declining sharply before the start of the period, the Building Societies industry is expected to expand over the five years through 2015-16. Although industry revenue fell steeply as a result of the financial crisis, the low-risk strategies and narrow focus of most building societies helped the industry weather the storm more successfully than its banking rivals. Industry revenue is expected to increase at a compound annual rate of 2.2% over the five years through 2015-16.
Revenue almost halved between 2008-09 and 2009-10 as the industry was hit by falling demand for loans, declining house prices and tighter lending standards. How.. purchase to read more