Scarborough Completes Purchase Of Channel Islands Subsidiary

Press release published on 20 April 2007 by Scarborough Building Society

The Scarborough Building Society Group (Scarborough) today announced completion of its acquisition of the former Portman Building Society offshore deposit taking business Portman Channel Islands Limited.

The business will now be known as Scarborough Channel Islands Limited (SCIL). SCIL has a geographically diverse deposit book of circa £600 million and approximately 6,000 customers.

Announcing completion of the deal, Scarborough Chief Executive, John Carrier, spoke of SCIL’s plans to expand and develop what is already a successful business, now that it is part of the Scarborough Group.

Mr Carrier explained that future plans include using a blend of competitive pricing, product innovation and the development of new markets.

SCIL has reassured existing customers that the terms and conditions of their accounts will not change, and that a parental guarantee from Scarborough replaces the parental guarantee from Portman Building Society. This means that SCIL customers will continue to enjoy the security of the parental guarantee of a top 20 UK building society. SCIL will be writing to all existing customers in the next few days.

Scarborough is also pleased to confirm that SCIL’s existing management team and staff, headed by Managing Director Stephen Le Poidevin, will continue in their roles and will be instrumental in the development and expansion of the business.

Robin Litten, Scarborough’s Finance Director, and Andrew Holmes, Operations Director & Secretary, will replace the two Portman Building Society Directors on the SCIL Board as non-executive directors, while Stephen Jones will continue as Chairman.

SCIL will enhance the Scarborough Group’s strategy of growth and diversification, adding to its existing suite of complementary businesses.

Scarborough Chief Executive John Carrier said: ‘I am delighted to announce the successful completion of our acquisition of our new offshore company SCIL.

‘The future prospects of this business and the offshore market in general present very real opportunities and we are looking forward to supporting the existing Guernsey based team in developing new products and service offerings which will appeal to existing customers and attract new ones.

‘The acquisition adds a significant additional strand to our already diverse business model and will further enhance the success and profitability of our Group, which will benefit customers and members alike.’

Stephen Le Poidevin, SCIL’s Managing Director, added: ‘The offshore arena presents a raft of opportunities for the development of new products and service propositions and, ultimately, expansion into new markets.

‘Scarborough has an impressive reputation in the UK and has ambitious plans for supporting the enhancement of SCIL for the benefit of both existing and new customers. This is an exciting time for me and my SCIL team to be at the forefront of these developments’.

About Scarborough Building Society

Scarborough Building Society is the 18th largest building society in the UK, with assets under management of more than £4 billion. A rapidly evolving, dynamic business, the Scarborough Building Society Group is made up of Scarborough Building Society (SBS), Scarborough Mortgage Services (SMS), which administers mortgages for major clients and North Yorkshire Mortgages (NYM). NYM is the Group’s mortgage asset trading company and includes the Scarborough Specialist Mortgages (SSM) brand, which offers non-conforming and specialist mortgages.

SBS has a network of 9 branches in Yorkshire, Lincolnshire, the East Midlands and the North East. Its contact centre, Scarborough Direct, offers telephone and postal account services throughout the UK. The Society has 160,000 customers.
The SBS Group employs over 300 people and has modern, purpose built offices on the outskirts of Scarborough, North Yorkshire. SSM also has an administrative office in the centre of Leeds, West Yorkshire.

About Scarborough Channel Islands Limited

Scarborough Channel Islands Limited is based in the Bailiwick of Guernsey and is the new offshore deposit-taking arm of the Scarborough Building Society Group. SCIL is a wholly owned subsidiary of Scarborough and is regulated by the Guernsey Financial Services Commission.

SCIL employs 11 people and will continue to operate largely as a standalone business, with support from the Scarborough Board. In the year ended 31 December 2006, the business delivered pre-tax profit of £2.1 million.

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