West Bromwich Building Society bosses today revealed they are launching a major review of its branches as they announced a loss of £8.4 million.

Chief executive Robert Sharpe said the society was concentrating on its “back to basics” strategy of concentrating on home loans and savings.

But he also wants to expand the operation into Birmingham, which no longer has its own building society, and that could mean a reorganisation of the branches and administrative offices. He said the results of the review would be announced at the end of the first quarter of next year.

The society currently employs around 850 people, 500 at its head office and the rest spread across its 47-strong branch network.

It is already looking for new office accommodation to relieve pressure at its overcrowded headquarters in West Bromwich High Street.

The loss of £8.4m for the six months to the end of September was a dramatic improvement on the £47.8m loss the previous year. “I am quite pleased; we are making very good progress,” said Mr Sharpe. “There is no question we had a desperate year last year. We said at our AGM there would be a gradual recovery, it wouldn’t happen overnight.”