Online and postal voting closes Friday 11th April 2014 at 5pm
Using your member vote
As a member you're an important part of our society. We're owned by you and all our other members across the Yorkshire, Chelsea, Barnsley and Norwich & Peterborough building societies. We come together as the Yorkshire Building Society Group.
Voting is important; this is your society
With 150 years of expertise to guide us, we have your best interests at the heart of everything we do. The decisions we have made have ensured that we are financially secure and able to offer you long-term value and excellent service.
As we are owned by you, you get to vote on key decisions - such as election of the directors who run the Society on your behalf. This takes place each year at our Annual General Meeting (AGM), where you can meet and speak to our directors, share your views and use your vote. As attending the AGM won't be convenient for everyone, we’ve enclosed everything you need to find out more and use your vote from the comfort of your own home.
Everything you need is right here
This site gives you all the information you need to make an informed vote, including details on the directors up for election and re-election and information on the other resolutions.
Three easy ways to vote
Whether it's online, by post or in person, we’d really like all our members to use their vote in 2014. To say thank you, we'll donate 15p for every vote, or 25p if you vote online (up to a maximum of £50,000) to be shared between Macmillan Cancer Support and Guide Dogs for the Blind Association.
This is your society - thank you for being part of it and we hope you’ll use your vote.
Directors for election and re-election
The Society belongs to you and all our members. That's why we want you to vote on key decisions that affect you at the Annual General Meeting (AGM). There are currently 12 directors1 on our Board and you can vote for the election and re-election of the six directors below at the AGM. Details of the other directors.
Directors for election
Mark Pain BSc, FCA (52)
- Joined the Board in August 2013
- Member of the Audit and Group Risk Committees
- Chartered Accountant, over 25 years' experience in financial services
- Currently non-executive director of Aviva Insurance Ltd, Spirit Pub Company Plc, Johnston Press Plc and London Square Developments Ltd
- Previously held senior executive roles included positions at TSB and Abbey National Plc
My experience working on the safe and secure transformation of businesses excites me, particularly in relation to the Group's investment plans.
Operating the Group within appropriate risk mandates and ensuring the needs of the regulators goes hand-in-hand with staying accountable to you, the owners of the Society.
My own experience together with having been a director on a number of boards, including within the financial services sector, helps me ensure that the Group's strategy is appropriate and hold management accountable for their delivery of that strategy.
Challenging executive teams is vital to deliver the required performance. That's why I will continue to enquire, question and challenge as necessary, to ensure we remain a strong organisation and continue to put customers’ needs first.
Guy Parsons BA (50)
- Joined the Board in May 2013
- Member of the Remuneration Committee and has Board oversight role for People
- Currently non-executive director of London and Partners, Warmup Plc and Chairman of the North East Surrey College of Technology
- Previously Chief Executive with Travelodge and several senior positions within Whitbread Plc
I will continue to work enthusiastically with the Board to make sure we maintain a great customer and people experience for all.
Understanding our customers and what's important to them is something at which the Yorkshire excels. This is a truly valuable asset - particularly in a climate where many competitors are struggling to maintain customer trust, loyalty and of course confidence.
My experience within the retail and hospitality sectors across multisite operations means I share a fundamental belief that our focus is quite rightly on our customers and their experience with us. To deliver an excellent experience we need to continue to recruit and retain the very best people, I will focus on this in my 'people' oversight role.
Directors for re-election
BSc, CPFA (63)
- Joined the Board in 2003, Chairman since 2007
- Member of the Board Governance & Nominations Committee
- Currently Chairman of the Airport Operators Association, member of the Council of the University of Leeds and Pro Chancellor of Leeds Trinity University
- Previously held senior executive roles include Managing Director of Leeds Bradford Airport and Executive Director
We have a clear vision for the future and I look forward to delivering this vision with the support of our members and my colleagues.
It is a real privilege to have led your Board through what has been an exceptionally busy year. Planning for the future and ensuring we retain our marketleading position were key themes throughout 2013, with a focus on our substantial investment programme.
With trust in the financial services sector under the spot light, I am committed to your Board demonstrating the highest standards of corporate governance and consisting of people with the best skills, experience and values to ensure that trust in us is never diminished.
I believe that my extensive experience and personal commitment mean I am well positioned to continue to lead your Board and to share and deliver our vision for the future.
Kate Barker CBE (56)
- Joined the Board in 2010
- Member of the Group Risk and the Board Governance & Nominations Committee. Has Board oversight role for Conduct Risk
- Currently non-executive director at Electra Private Equity Plc, Taylor Wimpey Plc and senior advisor to Credit Suisse
- Previously member of the Monetary Policy Committee of the Bank of England and Chief Economic Advisor for the CBI
I am keen to ensure that our members' great customer experience is consistent - however they choose to contact us.
This is a multi-channel business and how the Group responds to its customers, be it in branch, online or on the phone, is vital to our continued success. I am committed to ensuring that this is a priority. I want to ensure customers receive this great experience on every single occasion we are in contact with them.
I am a firm believer that when things don't go right we learn from the experience and improve what we do - this is key to our vision and values. By providing scrutiny, support and advice to the Executive Team I aim to ensure our values are strongly embedded across the whole organisation. With experience across the public and private sectors, along with in-depth knowledge of the economic environment and the housing market, I believe I am well placed to make a real contribution to your Board.
Andy Caton BA (50)
Chief Corporate Affairs
and Treasury Officer,
- Joined the Society in 1992 as an Economist
- Appointed Executive Director in 2004
- Has responsibility for corporate affairs and treasury functions
- Currently Vice President of the Bradford Chamber of Commerce and Industry
I believe our responsibility extends beyond our members and customers and out to the wider community.
I am responsible for wholesale funding for the Group and maintaining our sustainable financial security by making sure that we always have sufficient funds available to meet our obligations.
I am also responsible for corporate affairs, maintaining open channels of communication with the media and other important external audiences. This includes ensuring we are well known for playing a key role in the lives of the communities we serve.
I am personally very proud to be a trustee of our Charitable Foundation and of our commitment to Corporate Social Responsibility. This is demonstrated through substantial donations to good causes and colleague volunteering.
MA, ACA (48)
Chief Operating Officer
and Finance Director,
- oined the Society in 2004 as Head of Finance. Appointed Finance Director in 2010
- Responsibility for corporate strategy and planning, finance, property and shared services functions
- Previously worked at Price Waterhouse and a number of financial services organisations
I believe that we have emerged stronger and fitter than when we entered the financial crisis.
During the last few turbulent years my focus has been on ensuring we remain one of the UK's strongest financial institutions. Our members have every right to expect us to be financially sustainable, meaning that we are a secure and stable home for their money; somewhere they can trust to look after their savings.
This is still my main focus and one where my varied experience within financial services including risk management and prudential regulation, can be used. I am absolutely committed to ensuring that, as we grow our business, we have robust controls over our costs and maximise the benefits delivered from our investment in new systems and processes. Also, that we retain our focus on managing all aspects of the Group prudently and safely.
Owned by, and run for you - here are some of our 2013 highlights:
- 92% of customers say they can trust us2
- Proud to be voted Most Trusted Financial Provider - MONEYWISE 2013 AWARDS
- Donated £1.2 million to charities and good causes
- Improved accessibility to our products and services - three new branches opened, new mobile and tablet friendly websites
- 3,184 Mortgage Best Buy mentions and 1,232 Savings Best Buy3 mentions across the Group
- Number of directors correct as at 28th February 2014.
- Nunwood Survey, customers either agree or strongly agree that we are someone they can trust; 7,636 members responded. October - December 2013.
- Presswatch Financial from Kantar Media.
As well as voting on the directors, you also get to vote on other important matters, known as resolutions. These are included in the Notice of Meeting. Here's a brief summary to help you use your vote. Your Board recommends that you vote in favour of all the resolutions.
Ordinary resolutions – the resolution will be passed if a majority of members who vote, vote in favour:
Item 1 of the Notice - the 2013 Annual Report and Accounts
The Accounts provide detailed information on the Society’s financial performance for 2013 and include a report on the strategic direction of the Group. You'll find a summary of our financial performance as well as reports from the Chairman and Chief Executive. For a copy of the 2013 Annual Report and Accounts please call in to your local branch, visit ybs.co.uk/annualreport or use the Contact Us section.
Item 2 of the Notice - Re-appointment of Deloitte LLP as the Society's auditor
With significant experience in financial services, Deloitte has acted as the Group's independent auditor for the last five years. To comply with legislation, the auditor has to be re-appointed by our members each year.
Items 3 and 4 of the Notice - Directors' Remuneration Policy and Remuneration Report
We remain open on how our directors are paid. A summary of our Directors' Remuneration Policy (which details our approach to pay and reward) and the Directors' Remuneration Report (which includes the amounts the directors earned in 2013) can be found here.
There are separate votes on the Policy and Report. These are advisory votes, so we'll consider the results carefully to decide what action, if any, we need to take. Full versions of the Policy and Report are in the 2013 Report and Accounts.
Special resolution - the resolution will be passed if at least 75% of members who vote, vote in favour:
Item 5 of the Notice - Changes to the Society's Rules
Our rules set out the constitution of the Society. They are being updated to bring them more into line with the 'model' rules published by the Building Societies Association. Information on the proposed changes is included on pages 20 to 23 of your booklet, including how you can obtain a full copy of the existing rules with all the changes highlighted.
You can find out more about how your Board operates and complies with best practice provisions in the Corporate Governance Report in the 2013 Report and Accounts.
Looking ahead to a brighter future
Our Chairman, Ed Anderson, reports another successful year as the economic upturn becomes more established.
I'm delighted that during 2013 we continued to build on our success of recent years. The Group's financial performance has remained very strong, achieving excellent levels of profit while maintaining solid levels of capital and liquidity.
We are one of the UK's strongest financial institutions, because of our management approach. With trust in financial services organisations remaining low we continue to stand out amongst the crowd, because we are different, because we have customers at our heart and because we have no need to chase short-term profits or undertake risky financial activities.
We will continue to balance delivering value and service to our members with maintaining our financial strength for the long term. We view 2013 as having been another year of successful delivery.
Is the UK economy finally turning a corner?
Forecasts are more optimistic and business confidence is growing
Our lending activity has increased - whether it's residential lending to home owners, buy to let, social housing or secured lending to small and medium-sized businesses. Through safe and responsible lending, our business has grown - via the Yorkshire, Chelsea and Norwich & Peterborough building society brands and Accord Mortgages, our intermediary lending subsidiary.
This is despite the continued economic uncertainty that prevailed for most of 2013. As we move into 2014, there is growing evidence that the UK economy is now taking a more convincing path towards recovery. Both commentators and independent forecasters are increasingly optimistic, and business confidence is now above pre-crisis levels.
All this means that we're well placed to grow our business further. We are aware that there are still risks to the UK economy and so it makes sense for us to approach 2014 confidently but carefully.
How are things looking for savers?
Low rates are likely to be with us for some time to come
Savers continue to face low interest rates and may do so for some time. Rates are driven by the record-low Bank of England Bank Rate and the effects of the Government's Funding for Lending Scheme. Mark Carney, the new Governor of the Bank of England ('the Bank'), has indicated that the Bank Rate will not be increased until the UK recovery is well-established. Against this background, we will continue to seek to protect savers from the worst effects of low rates as far as we sensibly can.
How are you protecting savers and ensuring pricing that's sustainable in the long term?
We remain focused on delivering long-term value
We're always exploring ways to offer excellent rates through competitive products for both new and existing customers. At the same time we have to be careful not to over-price our savings products and be flooded with more money than we're able to sensibly lend to our borrowers.
As a responsible mutual building society, answerable to our members and not to external shareholders, we see simple, easy-to-understand products as key to our long-term vision.
The Group achieved 3,184 1 mortgage Best Buy mentions in 2013 - a 30% increase from 2012
What's the picture for home owners?
As demand picks up, we remain committed to responsible lending
2013 saw people's incomes further stretched by the rise in living costs. Inflation has been running at around 2.5% for most of 2013, but earnings have grown at less than 2 . As a responsible lender, we need to make sure our borrowers can afford their mortgages not just now, but also in the future.
Assisted by improved consumer confidence, record-low interest rates and the Government's Help to Buy scheme, the mortgage market revival continues. The Bank's data 3 confirms that mortgage rates continued to fall in 2013, while demand for mortgages, and their availability increased. As the market re-energises we will maintain our focus on lending affordably and sustainably for us and our borrowers.
How are you regulated?
Two new bodies have changed the regulation landscape
In April 2013, our regulation by the Financial Services Authority (FSA) was replaced by supervision through two new bodies. At a high level, the Prudential Regulation Authority (PRA) now assesses our financial strength, while the Financial Conduct Authority (FCA) monitors how we ensure fair outcomes for our customers.
During 2013, in addition to its day-to-day supervision, the PRA reviewed the Yorkshire Building Society Group in two areas. Firstly, it conducted formal 'stress tests' of our capital position to test the Board's view that it has sufficient capital. Secondly, it held a meeting with the Board to assess its effectiveness.
The FCA reviewed key areas of our business, looking at our conduct risk controls i.e. those designed to ensure that we deliver fair customer outcomes. As a Group, we've always made the way we treat customers a top priority, but we will work on continually strengthening our controls to both deliver and monitor this commitment.
How are you managing conduct risk?
Our risk framework encompasses all aspects of the Group
Our obligation is to make sure that our conduct risk framework is effective right across the Group, so that we consistently deliver fair customer outcomes.
It has become clear that some of the Group's processes and systems were not providing sufficiently robust assurance that fair outcomes were always being delivered to customers. In other words, we could not always be sure that we were delivering on our commitment. This was particularly the case in our arrears collection operation, where it was felt that a lack of robustness in some processes could lead to unnecessary charging of administration fees to some customers. We're working to put this right in our arrears management through a programme of re-imbursing previously charged administration fees and re-designing our arrears management systems and processes.
During the year we also withdrew our Protected Capital Account from sale, as a result of concerns by the FCA about an element of the product literature. We continue to discuss this with the FCA to ensure that fair outcomes for customers are achieved.
At the same time, we very quickly sought advice from an external expert to review all areas of the business and identify those where detailed reviews and changes might be needed in order to ensure that fair outcomes for customers are delivered consistently. We're now acting on that advice across a range of areas including investing in an ongoing assurance programme to ensure we maintain the high standards we have set ourselves.
As a Group, we've always made the way we treat customers our top priority, but continue to strengthen our controls to deliver and monitor this commitment
How is the Group responding to regulatory changes?
We closely monitor the impact of new regulation
The Retail Distribution Review (RDR) conducted by the FSA looked at how to raise professional standards for the provision of financial advice, providing better clarity between the different types of service available and making the cost of advice clearer to customers. The resulting regulations were introduced in January 2013 and a number of providers of financial advice have since withdrawn from the high street. Many other providers are now restricting their advice to more affluent customers and reducing the number of advisers they employ. We are proud to say we continue to be committed to offering financial advice to all our customers, through our relationship with Legal & General.
April 2014 sees new Mortgage Market Review (MMR) regulations coming into force. These new regulations are designed to ensure responsible lending to new and existing borrowers. We believe that we are well placed for their introduction. For example, our branches already provide mortgage information to new and existing borrowers on an 'advised' basis through our qualified mortgage advisers – a requirement of the new regulations.
We keep a constant watch on economic and regulatory developments. As we enter 2014, we continue to monitor the impact of MMR changes, the EU's mortgage credit directive, and the upcoming FCA review of cash savings accounts.
What were the Board's priorities in 2013?
Our main focus during the year was on:
- Ensuring capital and liquidity ratios
We have maintained capital and liquidity at levels above those that would be required in adverse conditions.
- Managing our funding in a
We have taken advantage of the Government's Funding for Lending Scheme but continue to draw the majority of our funding from members' savings.
- Continuing to grow the business through
Balancing borrowers' needs with our commitment to lend safely and responsibly at all times.
- Closely managing our arrears position
Arrears remain well below the industry average 4 , nevertheless we continue to focus on helping borrowers who are experiencing payment difficulties.
- Effective management of conduct risks
Ensuring fair customer outcomes through an effective conduct risk framework right across the Group.
- Ensuring the Group is set up to deliver our
strategy and operate more effectively
Our new customer-focused organisational structure means we're better placed to deliver our strategy.
- Staying close to what members need
We do this in various ways, including regular surveys, member Q&A sessions across the UK and branch visits. We are currently reviewing our member engagement activities, looking for new ways to make it easy for customers to tell us what they think.
How is the Board governed?
Our experienced, capable team meets the highest standards
The Board is composed of executive directors and non-executive directors who possess skills and experience at the highest level across different specialisms and industries. This means we can ably adapt to the Group's changing business needs. The Board works to ensure that the Group adopts high standards of corporate governance in line with relevant codes and regulations.
As well as their wide-ranging experience, it's also vital that the Board has specialist knowledge of the financial services industry. The current members of the Board have a combined experience of around 220 years within the industry – an average of over 18 years per director.
How does the Board set strategy and monitor performance?
Regular meetings and reviews ensure we are making progress against our plans
The Board holds regular monthly meetings, including two dedicated strategy sessions during the year. It works closely with the Executive Team to set, monitor and review a strategy that is appropriate for the Group and for changing market conditions.
At the same time, the Board makes sure the Group is following the agreed Corporate Plan, which sets out our strategy for the next five years. To do this, every month the Board reviews a Management Information pack setting out target Key Performance Measures and the current performance against these. In particular, this enables the non-executive directors to monitor and challenge the Executive Team's performance throughout the year. More detail on these measures, our performance and corporate plan are in the Annual Report and Accounts. For a copy, call in to your branch, visit ybs.co.uk/annualreport or use the Contact Us section.
How has the Board changed during the year?
We have strengthed your Board with new members
Guy Parsons and Mark Pain were appointed as non-executive directors on 1st May and 1st August 2013 respectively, bringing with them valuable experience and fresh insights. Both will be put forward for election by members at the 2014 AGM.
Mike Regnier has recently been appointed to the new role of Chief Commercial Officer and Executive Director, to lead the Group's commercial activities including product development and marketing. He is expected to take up his position in the spring.
Roger Burden retired after three years on the Board as a non-executive director on 17th April 2013. We thank him for his commitment and excellent contribution.
It is with great sadness that I have to report the death of Mark Jenkins, General Manager for Commercial Services, following his long battle with cancer. Mark's significant contribution to the Executive Team has helped transform our business and he will be greatly missed by all. In his memory, the money we donate from each AGM vote will be shared between the two charities that Mark supported, Macmillan Cancer Support and Guide Dogs for the Blind Association.
Everything we do is aimed at building on the trust you place in us to act in your long-term interests
It's our people that make the difference
A big thank you to our team
The Group's workforce now stands at 4,333 people across our national branch network and office sites in Bradford, Cheltenham, Leeds and Peterborough.
On behalf of the Board, I wish to thank the entire team for again delivering excellent service to all our customers in 2013. It is thanks to their hard work that the Group has performed so well.
Further building trust as we celebrate 150 years
As an established building society, the interests of our members will always come first
Trust in the financial services sector as a whole continues to be low. As a building society we are owned by our members and everything we do is aimed at building on the trust you place in us to act in your long-term interests.
150 years on from the original foundations of the Yorkshire, we continue to believe in helping people have better lives. We will work hard to fulfil our vision 'to be the most trusted provider of financial services in the UK'. We will do this by providing excellent service to you, our members; earning and keeping your trust – and proving that we're different to the big banks. Our outstanding team and our financial strength and sustainability equip us ably to do this and to face any uncertainties that lie ahead.
25th February 2014
- Source: Presswatch Financial from Kantar Media.
- Source: Office for National Statistics - Consumer Price Inflation and Average Weekly Earnings.
- Source: Bank of England 'Trends in Lending' January 2014.
- Source: Council of Mortgage Lenders as at December 2013.
Chief Executive's report
Building on 150 years for continued success
Our Chief Executive, Chris Pilling, highlights the successes of 2013 - and our progress towards delivering our vision for the future.
We aim to deliver this vision by being a modern mutual that remains firmly grounded in 150 years of experience. Owned by our members, our fundamental purpose is to provide a secure place for people to save and to help people buy their own homes.
To provide value to our members, we aim to optimise rather than maximise profits. This means pricing our products so that they provide long-term value, are attractive to new customers and so help grow the Group. At the same time, our products must generate sufficient profits to maintain our strong capital position. If we can deliver this, then we will keep the Group solid and be around for another 150 years for future generations of members.
Our vision is to be the most trusted provider of financial services in the UK
To achieve this balance safely in a changing market, we focus on our five strategic priorities:
- To deliver a market leading customer experience built on empathy, simplicity and trust.
- To deliver products, processes and systems for all our channels and brands that are easy and simple to use.
- To attract and retain the best talent, with a leading people experience built on our cultural foundation of mutual trust.
- To deliver sustainable financial performance that ensures real financial security for our customers, within our risk appetite.
- To be locally famous and meaningfully engaged in our communities.
At the start of 2013 all our people helped us reshape the Group's values. Our values now centre around the simple principle of having 'customers at our heart'. This statement encapsulates everything we do already and who we are. We also aim to:
- Be trustworthy – keeping our promises so people can count on us when it matters most.
- Keep it personal – putting people first, with humanity, decency, warmth and care.
- Be passionate - loving what we do today and sharing our ideas to make things better for tomorrow.
Investing in a better customer experience
In 2013 we launched our investment programme, encompassing our systems, branches, people and products. At the same time, in line with our vision, an over-riding priority is doing the right thing for our customers and so regulatory projects form a key part of the programme.
The four main elements are:
- Re-engineering. Establishing more efficient, effective and cohesive processes and systems, making it easier and simpler for our customers and people whilst allowing the Group to operate and grow at a lower cost.
- Web and mobile. Developing the Group's internet and mobile capabilities so that our customers can more easily interact with us in the ways that they choose to.
- Insight. Enhancing our management information systems and processes so we can make decisions more efficiently and effectively.
- Property enhancements. Enhancing our branch and office environments for our customers and our people.
Over five years the overall programme will cost around £273m, but we are convinced that it is in the best interests of all our customers to improve the Group in this way. We will, needless to say, continue to rigorously control and review what we are spending and how we spend it.
2013: A year of substantial achievements
Focusing on what matters to customers
- We know that savers are suffering in the current low-rate environment, and so have kept savings rates competitive and as high as we can safely sustain. For example, at October 2013 the overall average interest rate on our savings products was 2.00%, compared to the rest of the market at 1.72%1. Across all our brands, our savings products have received 1,2322 Best Buy mentions.
- We've seen record levels of mortgage completions, and confirmed our commitment to first time buyers by offering 5% deposit mortgages. During 2013 the Yorkshire launched the lowest ever five year fixed rate mortgage3 and received 3,1842 Best Buy mentions across our brands.
- Customer feedback is consistently positive across all our high street brands.
- We've invested in our web and mobile technology, making it easier than ever for customers to research and apply for products.
- Three new Yorkshire Building Society branches opened in Ripon, Wetherby and Yeadon, demonstrating our continued commitment to our branch network.
In the current environment we're pleased that Yorkshire Building Society was awarded Most Trusted Financial Provider and Most Trusted Savings Provider at the Moneywise Awards 2013 - in line with our vision 'to be the most trusted provider of financial services in the UK'. With almost 20,000 people voting, this is the single largest customer service survey about financial services providers in the UK.
Continuously finding ways to improve
Listening to our customers about better meeting their needs
We know we don't always get it right, and it has become clear that the Group's arrears collection processes and systems were not strong enough to tell us confidently that we were always delivering fair outcomes to customers. This might have led to the unnecessary charging of administration fees for some customers. We have worked to put that right as quickly as we can by reimbursing all such fees without delaying matters by analysing whether or not they were in fact fairly charged. We are also investing in re-designing our systems and processes in this area.
We have also undertaken a comprehensive review, using external experts, of our conduct controls across the whole Group, and are acting on these experts' suggestions. Delivering fair outcomes is critical to us, and we will act to ensure we can do so at all times, making sure customers are at our heart.
Likewise, we know we can learn from complaints and use this to strengthen our customer service and customers' trust in us. We have improved our complaints process in 2013 to include all forms of dissatisfaction, even if the issue was resolved or the customer didn't lodge a complaint. We believe our handling and resolution of complaints continues to be excellent. For only 6% of the complaints referred to the Financial Ombudsman Service (FOS) in the first half of 2013 did the FOS believe we had mishandled the complaint, significantly lower than the industry average of 64%. 6
Only 6% of complaints referred to the Financial Ombudsman Service about the Society were upheld, significantly lower than the industry average of 64% 6
Making it easy and simple
Developing skills and processes to better serve our customers
During 2013 we've been laying the foundations to transform the Group, with a key focus on developing our people and support processes. We want to make sure we have the required skills and competencies to drive change within the business. In 2013 we have made progress in a wide range of areas, including re-designing arrears and complaints processes, addressing conduct issues and new regulatory requirements, investing in our web and mobile offering, replacing key financial management systems and starting to re-design our mortgage and savings processes. We have been busy, but still have a long way to go. 2014 will see a number of these areas start to deliver real benefits to our customers, our people and the Group as a whole.
A leading people experience
Creating a better working environment for our people
We strive to attract and retain the best people. Without great people who are passionate about what they do, we won't deliver an outstanding experience for our customers.
We've increased our total number of employees by 222 in 2013, principally to deliver our investment programme and to work in our new branches. This has led to a need for larger premises and 800 colleagues recently re-located to new offices in the centre of Leeds. We've also started a much needed refurbishment of our principal office in Bradford for the 1,000 colleagues based there.
We know that there is more we can do but also know that we continue to do well in terms of colleague engagement - which stood at a healthy 76%, higher than the financial services industry average of 73%. 7
Another year of strong financial performance with robust profits, continued capital strength and healthy liquidity
Sustainable financial performance
Maintaining our financial strength and sustainability
Profit and profitability In 2013 the Group recorded another year of strong financial performance, with robust profits, continued capital strength and healthy liquidity.
Profitability in 2013 was driven primarily by the following movements:
- A release of Fair Value Adjustments made against assets and liabilities taken on during the mergers with Chelsea Building Society and Norwich & Peterborough Building Society, totalling £89m. This release is driven by our management of the underlying loans (and hence improved performance of the loan books) and by the improving economic conditions. We have, however, retained sensible levels of protection against these assets.
- The relatively low cost of funding because savings rates have been suppressed by a number of factors, including the Government's Funding for Lending scheme.
- A reduction in the amount provided for mortgage losses (£15m compared to £39m in 2012) reflecting further improvements in the quality of our loan books and improvements in the economic conditions.
Against these positive items:
- The Group bought back £75m of the £100m Convertible Capital Notes issued at the time of the Chelsea merger – and whilst this generated a loss in 2013 of £30m it will, over the next few years, generate an overall profit for the Group.
- Other income fell as we withdrew our Protected Capital Account product after concerns were raised by the FCA about elements of the product literature.
- As expected, management expenses were higher than 2012, driven primarily by our investment programme. We have made provisions to cover costs connected with the conduct issues relating to the arrears and Protected Capital Account issues referred to above.
Balance sheet strength
- Our capital measures are up on 2012, despite the growth of our mortgage assets, reflecting our continued financial strength.
- Our liquidity is closely managed to minimise the amount of costly, excess liquidity, whilst ensuring that we remain clearly above our regulatory requirements.
- Looking at the quality of our mortgage books, our arrears levels remain below the industry average. 8
Mortgage lending returned to levels not seen for several years. In 2013 our gross lending was £6.8bn, compared to £4.6bn in 2012. This represents a market share of 3.8% 9 (2012: 3.2%) and reflects our ability to deliver competitive products as the mortgage market improved.
In 2013, we saw a net retail funding outflow of £864m because we started the year with more funding than we needed (or could safely lend) following our decision to delay savings rate cuts in late 2012 and early 2013. We continued to offer competitive products as shown by over 190,000 new account openings in 2013.
It is a really important part of our mutual heritage that colleagues connect with their local communities
Being an invaluable part of our communities
It is a really important part of our mutual heritage that branch and office colleagues connect with their local communities. We put our branches at the heart of their communities, with initiatives like our Charity Choices programme, where members elect which local charities their branch will support. You can find more information on how we make a difference in our Societies Together section on the following page.
Outlook for 2014
In 2014 we'll continue our focus on delivering our investment programme to underpin our strategic priorities, whilst also continuing to deliver good-value products and excellent service to our customers. As outlined in this report, this is a significant investment that will put pressure on our costs in the short term, until we start to realise some of the financial benefits in years to come. But during 2014 customers should start to experience many of the benefits - be that through our new web and mobile offerings or our new or revitalised branches.
We expect 2014 to offer further real opportunities to increase our mortgage lending within our risk appetite, bringing award-winning mortgages to a growing number of customers.
We are confident that our financial strength, passion for customers and mutual heartbeat, along with investment in the business, mean we are well placed to succeed and be the most trusted provider of financial services in the UK.
25th February 2014
- Source: Average rates based on savings stock from CACI's Current Account and Savings Database (CSDB), currently covering 86% of the retail savings market. Data as at the last working day of October 2013
- Source: Presswatch Financial from Kantar Media
- Source: Moneyfacts March 2013
- Source: Nunwood Internal Customer Experience Tracker
- Source: Nunwood Customer Excellence 2013 rankings - a national survey of 7,500 UK consumers in October 2013
- Source: Financial Ombudsman Service complaints data (resolved cases) 1st January - 30th June 2013
- ORC International YBS Group Colleague Survey 2013
- Source: Council of Mortgage Lenders as at December 2013.
- Source: Council of Mortgage Lenders. Lending secured on dwellings 2013.
Our contribution to society goes beyond providing great customer service and simple, straightforward products. Through our Societies Together programme, we're proud to play a key role in the local communities we're part of, supporting causes close to your hearts.
Yorkshire Building Society Charitable Foundation
Our Charitable Foundation supports registered charities helping those who are more vulnerable, particularly the elderly, children and people with disabilities. In 2013 around 80% of charities supported were nominated by our members.
We're committed to ensuring our footprint on the planet is as low as possible. Our approach encompasses all areas of our operations and environmental considerations are part of our decision making, particularly when looking at travel, waste and energy. We support the Government's Carbon Reduction Commitment Energy Efficiency Scheme, which requires us to purchase allowances for every ton of energy related CO² we emit.
Small Change, Big Difference™
Our innovative scheme allows members to donate to the Charitable Foundation by donating the pennies of interest from their account(s) each year. Each small amount makes a difference.
- More than 800,000 accounts are in the scheme, which has raised almost £3m since 1998
- Our aim is to have one million accounts signed up to the scheme
To join go to ybs.co.uk/your-society or visit your local branch.
Making a difference into the future
In 2014, we'll continue to review our programmes to ensure we're making a real and lasting difference in our communities and are managing our environmental impact in a sustainable way. This is integral to our vision 'to be the most trusted provider of financial services in the UK'.
Your Questions Answered
of customers say that they can trust us. 1
"It made me feel
that my money has
been put in safe,
N&P telephone customer
Q: How safe is my money?
A: As a building society, our first priority is to look after your interests by remaining financially secure. This is particularly important in difficult economic conditions.
The fact that we're not a bank means we don't need to create profit for outside shareholders. Instead we focus on generating enough profit to maintain our strong capital position.
So why is our capital strength so important? The more capital we have, the more resilient we are to unexpected events during uncertain times. It's also what protects the Society, and you, from any losses that might arise. In addition it allows us to keep investing in an exceptional customer experience for you, making it simpler and easier for you to do business with us. In a similar way, we make sure we always hold enough liquid assets to cover unexpectedly high levels of withdrawals by savers, or any other unforeseen outgoings.
Q: Do your improvements to web and mobile technology make it more likely that you will close branches in the future?
A: Our customers are choosing to access our products and services in new ways and smart phones and tablets are increasing in popularity. Investment in supporting these new technologies demonstrates our commitment to providing the same great service and convenience wherever you choose to do business with us. This commitment includes investing in our branch network, which our customers continue to value and use. In fact, in 2013 we opened three new branches.
"The site is user friendly and I could locate the information that I required with the minimum fuss."
Chelsea online customer
Q: When you say your vision is "to be the most trusted", what does this mean and how do you go about it?
A: Our members are at the heart of everything we do and protecting your interests over the long term is central to our approach. We achieve that through the products we provide, the service we give and the policies we follow.
We measure trust by listening to the views of customers and prospective customers through various research studies. This also means we can compare ourselves to other financial organisations. Trust is a key part of our values as we continue to grow and develop.
We get excellent feedback from our customers which is reflected in the Group's high Net Promoter Score® (NPS) 2 , a measurement used to assess the strength of our customer relationships based on how likely people are to recommend us.
NPS is a key performance measure for us, and it allows us to make market comparisons, continually challenging our levels of service and delivering improvements.
Q: Why do you have separate brands, wouldn't it be more cost effective to have just one?
A: All our members (whether from Yorkshire, Chelsea, Barnsley, or Norwich & Peterborough building societies) benefit from being part of the Yorkshire Building Society Group. As a larger organisation we can offer increased financial security and access to better products and services.
The brands we have acquired through our recent mergers and acquisition have respected reputations. The building society brands have a strong heritage in their own heartlands through their branch networks and have established relationships in their local communities.
During 2014, it is our intention to revisit the look of each of the brands that make up the Yorkshire Building Society Group.
"...they did everything I asked for and everything promised was delivered. You can't get better than that."
Chelsea mortgage customer
Q: What does being a member mean to me?
A: Our society belongs to its members - real people like you, not external shareholders. And that's why we want to hear your opinions and what makes a difference to you. We get regular customer feedback and in 2013 we received over 85,000 survey responses that helped us to shape our business.
If you would like to get involved, visit ybs.co.uk/your-society where you can find out more about Member Question Time meetings and the Member Panel.
Q: What is the role of the Board and what do the directors do?
A: The Board makes sure that the Group is run in your best interests. So it's important that we have the right people. They need the skills and experience to run a large successful, financial organisation and all our directors have to be approved by our regulators. Executive directors are employed full time by the Group. They have specialist in-depth experience in a particular area and as a team are responsible for the leadership of the organisation.
Non-executive directors are not employed by the Society. They have extensive experience in business or commerce as well as a specialist skill such as risk management, accounting or retail experience. They constructively challenge the Executive Team and ensure that decisions taken are in the best interests of our customers.
The strong financial results and high levels of customer satisfaction in 2013 show our society is in a strong position. We believe that the directors have done their job well to protect your interests.
Q: What are you doing to help borrowers?
A: Developing our offer
We spent many months researching the needs of first time buyers and existing homeowners. Our decision to develop 95% mortgages in 2013 was carefully thought through. We believe they are a responsible extension of our existing range and address the largest obstacle faced by many borrowers: raising a big enough deposit to get on the housing ladder or to move on with life. Our 95% range uses the same robust calculations we use in deciding whether to lend to any borrower, tailored to the greater loan to value.
Borrowers in arrears
We invest heavily in our systems and in training our teams to help support borrowers who are struggling. We deal with them in a positive manner through our sympathetic team who have arrears counselling skills. By contacting borrowers as soon as they go into arrears we can understand their financial position and look at a range of options. These include allowing reduced payments for a short time or considering interest only payments.
The percentage of our outstanding retail mortgage balances in arrears by three months or more, including possessions, (as at 31st December 2013) reduced to 1.57%, compared to 1.69% the previous year.
"Fantastic tailored service...definitely consolidated my thoughts that YBS are customer focused and want to do the best by their clients."
Yorkshire branch customer
Q: What are you doing to help savers?
A: As a building society our priority is to deliver financial security and value to members. While we do not seek to maximise profits, it is necessary for us to generate enough to maintain our financial strength.
We have continued to offer our savers competitive, long-term value accounts at a time of historically low interest rates within the savings market as a whole. We received more than 1,232 3 Best Buy mentions during 2013. Around 65% of our variable rate savings accounts are paying an interest rate above the Bank of England Bank Rate, representing around 90% of all balances.
As a result of significant cuts in interest rates across a variety of products in the savings market during 2013, we reduced our rates on selected existing variable rate accounts after much thought and consideration.
One of our main requirements was to protect our existing customers as much as possible. For that reason, we ensured existing product rates remained higher than their equivalent rates for new customers.
Products with interest rates at or below 1.25%, children's savings accounts and existing regular savings accounts were unaffected by the changes. For a limited period those members affected had the option to withdraw funds and/or close their account without giving any notice or losing any interest.
We remain committed to offering good long-term value and always try to offer good rates by providing a range of competitive products to new and existing customers.
- Source: Nunwood Survey, customers either agree or strongly agree that we are someone they can trust; 7,636 members responded. October - December 2013.
- Source: Nunwood Customer Excellence 2013 rankings - a national survey of 7,500 UK consumers in October 2013.
- Source : Presswatch Financial from Kantar Media.
Summary financial statement
This financial statement is a summary of information in the audited Annual Accounts, the Directors' Report and the Annual Business Statement, all of which will be available to members and depositors free of charge at every office of Yorkshire Building Society, (including Chelsea, Barnsley and N&P branches) from 6th March 2014.
Summary directors' report
The directors consider that the Group has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the going concern basis has continued to be adopted in preparing the Annual Report and Accounts.
Approved by the Board of Directors on 25th February 2014
Ed Anderson - Chairman
Lynne Charlesworth - Vice Chairman
Chris Pilling - Chief Executive
Changes to the Society's Rules
Item 5 in the Notice of the Annual General Meeting (AGM), is to update the Rules of the Society. This note explains the alterations.
The Rules are the Society's main constitutional document and have to cover a number of areas which are set out in the Building Societies Act 1986 (as amended from time to time). The Society has not updated its Rules since 1st July 2010. It is now doing so, following the publication by the Building Societies Association (BSA) of the Sixth Edition of its Model Rules on which the Society's Rules are largely based. This has been produced by the BSA to reflect changes in building society law and practice since the publication of the previous edition of the Model Rules. The alterations also include changes to allow the Society to issue new forms of capital instrument, including Core Capital Deferred Shares (CCDS), and to update the Rules regarding Permanent Interest Bearing Shares (PIBS).
The Financial Services Authority, as it was until 1st April 2013, whose powers have been inherited by the Financial Conduct Authority (FCA), was consulted in the development of the Sixth Edition of the Model Rules and indicated that it would regard its use by societies as helpful.
The notes below set out the main areas of change and provide examples of specific changes in each area. A full copy of the existing Rules, with the alterations highlighted, and a full list of all the changes is available at ybs.co.uk/rules or by calling the number on your Chairman's letter.
It is intended that, if the alterations to the Rules are agreed at the 2014 AGM, they will take effect on 1st July 2014 or on the date they are registered by the FCA, if later.
The Board believes that these alterations will benefit members and therefore recommends that members vote for the changes.
The main areas of change are set out below.
1. Electronic communications
There has been a substantial growth in electronic communications affecting building societies since the Fifth Edition of the Model Rules. Whilst the Society made some changes to its Rules in 2007 to allow for electronic communications, the opportunity has been taken to bring the Society's Rules on electronic communications in line with the Model Rules. These changes cover the full range of communications, including matters relating to meetings, and are reflected in proposed alterations to the Society's Rules, the main examples being;
1.1 General changes
- Rule 1(e) - as numbered following the proposed alterations - contains provisions specifically facilitating the use of electronic communications for sending notices or documents under the Rules.
- Rules 32(5) to (8) – these contain specific alterations to the Rules relating to Notice of Meetings to cover electronic communications.
- Rule 46(2) - as numbered following the proposed alterations - this extends the existing provision regarding service of notices to members and to the Society to cover electronic communications.
- Rule 46(5) - confirms the authority which all building societies already have by law to serve notices and other documents electronically.
1.2 Particular application to meetings
- Rule 37 - there are a number of proposed alterations designed primarily to facilitate the appointment (and revocation) of proxy appointments by electronic communication.
- Rule 39 - this Rule has been fully revised to allow for electronic ballots.
1.3 Other related changes
- Rule 1(a) – definitions of “Register” and “Registered Address”: these have been altered, principally to cater for electronic addresses.
- Rule 1(d) – as numbered following the proposed alterations - this new provision is designed to give the Society greater flexibility in relation to the acceptance of signatures on documents in forms other than signatures on paper documents.
- Rule 42(6) – this provides for an electronic form of seal for the Society.
As well as the alterations affecting electronic communications, there are a number of other meeting related changes, the main examples being;
- Rule 31(3)(a) - the amount required by each member requisitioning a Special General Meeting (SGM) has been increased from £25 to £50 (which is the statutory maximum) and a members' resolution put to such a meeting must be capable of being passed as a valid resolution under the general law.
- Rule 33(1)(c) – this has been altered to provide that members seeking to propose a resolution at an AGM must provide their full name and address and account details to enable the Society to verify that the member is eligible to propose such a resolution. The resolution to be proposed at the AGM must be capable of being passed as a valid resolution under the general law.
- Rule 34(1) – the provisions relating to the quorum (i.e. the number of members required to be present) at general meetings of the Society have been simplified. A quorum of 15 members remains for the AGM. However, the number of members required to attend an SGM called by members is to increase from 50 to 100 members. As the number of members required to requisition an SGM is 500 (as set out in Rule 31(3)(a)), to set the requirement for 100 members to attend the SGM is considered reasonable.
- Rule 35(11) – a provision has been added confirming that the Chairman may declare the result of a poll (i.e. a formal vote not by a show of hands), except on an adjournment, at a time determined by him/her e.g. later in the meeting, shortly after the meeting or subsequently on the Society's website.
- Rule 36(6) – this has been altered to allow the holder of a power of attorney from a member to appoint a proxy to vote on their behalf.
- Rule 46(4) – as numbered following the proposed alterations - this provision has been included to provide alternative communication arrangements for meetings in the case of postal disruption.
3. Directors/the Board
The provisions regarding directors and the Board have also been reviewed, the main examples being;
3.1 Meetings related changes
- Rule 13(2) – this has been altered to provide that where a member submits a nomination form for election as a director, this must include information about each member nominating him/her to enable the Society to verify that the nominators are members eligible to propose such an appointment.
- Rule 13(7) – the change will mean that a candidate for election as a director will only be able to withdraw his or her nomination in the 28 days following the end of the financial year in which the nomination was received. This is to avoid the consequences of a later withdrawal which could lead to the AGM having to be postponed and the members re-mailed.
- Rule 15(1) – this has been altered to ensure that the Chairman (and any Vice-Chairman) will be a non-executive director thus ensuring that the offices of the Chief Executive and Chairman are separate positions.
- Rule 25(4) – a director appointed early in the financial year is able to be elected by members at the AGM in that year at the Board's discretion, and not wait until the AGM held in the following year.
3.2 Other changes
- Rule 12(4)(g) – the existing provisions for delegation by directors have been supplemented to allow the Board to delegate a specific matter to a third party by a power of attorney.
- Rule 13(1)(a) (and other connected rules) – this alteration is designed to reflect the fact that the “normal retirement age” provisions for directors under the Building Societies Act 1986 may well cease to apply in the future in light of the Equality Act 2010, and will therefore only be relevant so long as they are binding on the Society. Therefore in Rule 13(1)(a) we have removed the requirement for directors to be under the age of 70.
- Rule 16(3)/(4) – the provisions for meetings of directors have been simplified such as a single director being able to call a Board meeting.
- Rule 24 – this Rule deals with the circumstances in which a director gives up office and also now provides that an executive director has to stand down where he/she relinquishes executive office. Changes also clarify and amplify the Board's ability to remove a director who fails to maintain the required regulatory authorisation.
4. Terms and conditions/additional rules
The Rules within the 'Additional Rules' were originally part of the Society's Rules until they were removed in 1998, as they concerned matters more appropriately covered in mortgage and savings account documentation. However they were retained in 1998 as 'Additional Rules' in case there were any gaps in the Society's account documentation. Since the Rules were last revised, the Society has increasingly covered the relevant Additional Rules in the appropriate documentation for savings and mortgage products and in view of this, the Additional Rules have been removed.
Certain other 'terms and conditions' related provisions have been reviewed and altered in the light of regulatory and practice developments, the main examples being;
- Rule 4(7) – this has been altered to confirm that the Society will not refuse to accept further share (savings) account investments or lend further money on an existing member's account, though it may refuse to open a new account. Any further lending would be subject to our normal lending criteria at the time.
- Rule 6(3) – this deals with termination of membership by account closure by the Society. As altered, it will provide that membership can be terminated immediately if there is a valid reason (e.g. abuse of staff), otherwise there must be notice of one month, or longer if the account terms provide for the member to give longer notice of withdrawal.
- Rule 8(4) – this deals with notification of changes to terms and conditions of a share (savings) account and has been re-drafted following implementation of the Payment Services Regulations and the Banking Conduct of Business Sourcebook. The alteration allows notification of such changes to be as set out in the account documentation. If the account documentation makes no appropriate provision for this, then notification will be by not less than one month's personal notice to the account holder.
5. Sundry changes
There are a number of other changes which do not fall clearly into any of the above categories, the main example being:
- Rule 1(a) – this is the 'definition section' and includes a number of changes e.g. replacement of “Commission” (referring to the Building Societies Commission, which ceased to exist many years ago) with "Regulator".
6. PIBS rules/changes regarding capital instruments
The Society (like other building societies and banks) is required to maintain capital to protect against losses. The Society's Core Tier 1 Capital has, to date, consisted mainly of retained profits supplemented by issues of Permanent Interest Bearing Shares (PIBS). Regulatory changes in the UK and Europe mean that financial institutions are required to hold more Core Tier 1 Capital (or 'Common Equity Tier 1 Capital' as it is referred to under the new European regulations), and that further issues of PIBS will no longer qualify to supplement this. New forms of qualifying capital instrument are available to building societies under new European regulations, including 'Core Capital Deferred Shares' (CCDS), which will count as Common Equity Tier 1 Capital, and other forms of supplementary capital. Although the Society has one of the strongest capital ratios in the financial services sector, the Rule changes will allow the Society to issue new types of capital instruments and there may be circumstances where the Board believes it will be in the best interests of current and future members to do so.
The Society's existing Rules which cover the issue of PIBS have also been amended as part of these alterations.
Proposed alterations to the Rules include the following:
- Rule 1(a) – Introduces new definitions including 'Deferred Share' (which includes PIBS, CCDS and, potentially, other forms of capital under the new European regulations) and 'Periodic Distributions' (i.e. any distributions paid to CCDS holders). In particular there is a definition of 'Periodic Distributions Cap' which, in order to protect the Society's reserves, limits the maximum amount of distributions which the Society may pay on any CCDS initially to £15 per share per year (calculated on an assumed first issue price of £100 per share), which is adjusted each year by reference to the UK Consumer Price Index. Subject to the Cap, the Board will have discretion to set the actual return in any financial year based on the Society's overall financial position.
- Rule 8(3) – allows the Society to have the power to issue different types of Deferred Share to satisfy the relevant requirements under the European regulations for different types of capital instrument.
- Rule 12(6) – if CCDS are issued then the Board has the authority to decide and publish the Society's policy on Periodic Distributions, and (subject to the Periodic Distributions Cap mentioned above) to decide on the amount of Periodic Distributions (if any) to be paid on the CCDS each year.
- Rule 27(2) – introduces a provision requiring the terms of issue of CCDS to limit the Periodic Distributions in line with the Periodic Distribution Cap.
- Rule 28(2) – alters the existing Rules to clarify the order in which any losses of the Society would be met if CCDS are issued. Generally, the reserves continue to take the first loss, and if they are fully depleted then investors in the Society will take losses according to the ranking of their investment in the Society. CCDS (which will absorb losses at the same time as reserves) will be the lowest ranking capital (ranking below creditors and all other members).
- Rule 44(1) – this has been altered to clarify that, on a winding-up, a CCDS holder would not receive any payment until all creditors and other members had been repaid. Alterations have also been made to provide that CCDS holders may share in any surplus assets on a winding-up; the terms of issue of CCDS will set out how this share is to be calculated.
Important information about compensation arrangements
We are covered by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation to depositors if a building society is unable to meet its financial obligations. Most depositors - including most individuals and small businesses - are covered by the scheme.
In respect of deposits, an eligible depositor is entitled to claim up to £85,000. For joint accounts each account holder is treated as having a claim in respect of their share so, for a joint account held by two eligible depositors, the maximum amount that could be claimed would be £85,000 each (making a total of £170,000). The £85,000 limit relates to the combined amount in all the eligible depositor's accounts with the building society, including their share of any joint account, and not to each separate account.
Yorkshire Building Society (YBS) also operates under the trading names of Barnsley Building Society (BBS), Chelsea Building Society (CBS), Norwich & Peterborough Building Society (N&P) and Egg. YBS is a participant of the FSCS. Therefore, depositors with any of YBS, BBS, CBS, N&P and Egg have an overall limit of £85,000 under the FSCS.
Accord Mortgages Limited is a wholly owned subsidiary of YBS. Accord has offset mortgage products where the customer's deposits are held on behalf of Accord by YBS. Accord offset depositors are therefore also covered, (along with BBS, CBS, N&P and Egg depositors) by YBS being a participant in the FSCS. There is no additional protection for depositors with Accord Mortgages Limited.
For further information about the compensation provided by the FSCS (including the amounts covered and eligibility to claim) please call the numbers below, ask at your local branch, refer to the FSCS website www.FSCS.org.uk or call the FSCS on 0800 678 1100. Please note only compensation related queries should be directed to the FSCS.
0845 1200 100 - Yorkshire account holders
0845 1200 898 - Barnsley account holders
0845 744 6622 - Chelsea account holders
0845 300 2511 - N&P account holders
BA, MBA (age 57)
Joined the Board in 2006
Chairman of the Group Risk Committee, a member of the Board Governance and Nominations Committee, and trustee of the Society's pension scheme.
Lynne was appointed Vice Chairman in 2012 and has a background in risk management, particularly within the financial services and property sectors. Her former roles include Group Risk Manager of Abbey National Plc. In the 1990s Lynne founded a successful property and asset management business and she is now joint Managing Director of a private investment company, St James Investments.
FCA (age 67)
Joined the Board in 2007
Chairman of the Audit Committee.
During his 30 years as a Deloitte partner, Philip specialised in providing advisory and assurance services to large corporate clients. Before his retirement in 2007, he was Head of Audit Quality and Risk Management for the UK and led major investigations in the financial services sector.
Philip is also a member of the Audit Committee of the Wellcome Trust, a member of the Standing Advisory Group of the Public Company Accounting Oversight Board in the USA and a Non-executive Director of Lakeland Ltd. Until December 2012 he was also President of the Federation of European Accountants.
BSc, FCA (age 62)
Joined the Board in 2006
Member of the Audit, Group Risk and Remuneration Committees and trustee of the Society's pension scheme.
David is a chartered accountant with considerable experience in the financial services sector. He was a partner at Coopers & Lybrand in their financial services division and held other senior executive positions with NatWest Bank, Zurich Financial Services, Aviva Plc and Royal & Sun Alliance Insurance Group.
David is also a Non-executive Director of Willis Ltd and the IFG Group Plc.
BSc (age 62)
Joined the Board in 2005Chairman of the Remuneration Committee and a member of the Audit Committee.
Simon has extensive experience in marketing, sales and general management. He has held senior executive positions in large consumer product organisations, including Philips, PC City and PC World where he was Group Managing Director. He also chaired DSG's (formerly Dixons) pan- European internet business and is now a senior executive within the European division of the Acer Group.
Simon will retire from the Board immediately after the AGM on 15th April 2014.
MA (age 48)
Joined the Board in 2011
Chris has a wealth of experience in delivering exceptional customer service. He previously held senior positions with HSBC, including Head of Branch Network and Chief Executive of First Direct, its telephone and internet-based retail bank. Prior to this, Chris held a number of senior marketing positions in customer-focused organisations, including Marketing and Customer Services Director at Asda.
Chris is also a Non-executive Director of The Department of Health.
BSc FIA (age 53)
Chief Customer Officer - Executive Director
Joined the Board in 2007
Chairman of Accord Mortgages.
Ian is a qualified actuary and joined the Society in 2003. He was promoted to the General Management team in 2004 and he became an Executive Director responsible for sales and marketing in 2007. Ian currently has overall responsibility for the Group's product development, marketing, distribution through all channels, customer operations and customer relations functions.
This page shows some of your Board. For details of the other six directors up for election and re-election at the AGM please refer to Directors for election and re-election.
Summary directors' remuneration:
policy and report 2013
The Group aims to be as transparent as possible to help members understand how its directors are remunerated.
Rewarding those who secure our future
This report summarises our policy on pay, benefits and bonuses and finalises the amounts paid to directors for 2013.
The Group aims to be as transparent as possible to help its members understand how its directors are remunerated. To further support this approach this year's report reflects changes to the regulatory reporting requirements we consider relevant. It is split into two sections:
- The Remuneration Policy - explains our forward-looking approach to pay and reward.
- The Remuneration Report - detailing the amounts earned in the year ended 31st December 2013.
Voting on the Policy and Report
There will be separate votes on the Policy and Report at the 2014 AGM which will be on an advisory basis. We take our members' views as expressed through the advisory votes seriously, and will consider the results carefully to determine what action, if any, is appropriate.
We intend that a vote on the Policy will take place annually unless the approved Policy remains unchanged - in this case we will propose a similar resolution at least every three years, in line with the requirements for listed companies. We intend that voting on the Report will continue on an annual basis.
Notice of Meeting
The Annual General Meeting (AGM) of Yorkshire Building Society will be held at 2.30pm on Tuesday 15th April 2014 at the Midland Hotel, Forster Square, Cheapside, Bradford BD1 4HU for the following purposes:
1. To receive the Directors' Report, the
Annual Accounts, the Annual Business
Statement and the Auditor's Report for
the year ended 31st December 2013.
Summary Financial Statement. For a full copy of the 2013 Annual Report and Accounts, call in to your local branch, visit ybs.co.uk/annualreport or use the contact details.
2. To approve the re-appointment of
Deloitte LLP as auditor of the Society
to hold office until the conclusion of
the next Annual General Meeting.
To comply with legislation, the Society's members have to appoint an auditor each year.
3. To approve the Directors' Remuneration Policy for the year ended 31st December 2013.
4. To approve the Directors' Remuneration Report for the year ended 31st December 2013.
5. To approve changes to the
Proposed changes to the Rules.
6. To elect Mark Andrew Pain
7. To elect Guy Paul Cuthbert Parsons
8. To re-elect Edmund John Seward Anderson
9. To re-elect Katharine Mary Barker
10. To re-elect Andrew Mark Caton
11. To re-elect Robin James Churchouse
Having formally evaluated their performance, the Board considers that those directors seeking re-election continue to be effective and that they demonstrate the necessary commitment to the role.
By order of the Board
Ann L FitzPatrick
25th February 2014
Notes about voting:
Voting by post or online means that you are appointing someone else (known as your proxy) to attend the AGM and vote on your behalf. You can tell your proxy how to vote on each resolution when you complete the enclosed voting form or vote online. Your proxy does not have to be a member of the Society.
Completed voting forms must be received by the Society's scrutineers by 5pm on Friday 11th April 2014. For further information on how to vote, see your 'Easy guide to voting', and your voting form.
If you have any queries, please call or email using the details in the Contact Us section.
Directions to Yorkshire Building Society Group Annual General Meeting
|Date||Tuesday 15th April 2014|
|Location||Midland Hotel, Forster Square, Cheapside, Bradford BD1 4HU|
|Time of meeting||2.30pm|
|Registration desk opens||1.30pm|
Just bring the Chairman's letter, your passbook or recent statement to the meeting as a proof of membership.
Bradford Forster Square station is only 200m away and Bradford Interchange is a short 10 minute walk from the hotel.
The hotel is located in the centre of Bradford and is served by a number of bus routes.
For bus times visit:
The hotel is 5 miles from the motorway network. From the M62, take junction 26, joining the M606 which will bring you to Bradford. Then follow directions to the city centre. There are several public parks available as indicated on the map.
Easy access facilities are available at the venue
For any AGM queries, please call the number in the Contact Us section
Please check our Your Questions Answered page before contacting us, to check if your query/question has already been answered.
Yorkshire Building Society and Barnsley Building Society account holders
For your AGM queries
Call 0845 1200 888*
Chelsea Building Society account holders
For your AGM queries
Call 0845 7446 622*
Norwich & Peterborough Building Society account holders
For your AGM queries
Call 0845 1282 822*