West Brom Building Society fears

The society, which is set to unveil its annual results next Monday, has tried to fend off the rumours but is restricted over what it can say in the run-up to announcing its performance.

Weekend reports claimed the Treasury had put advisors on standby for a Government-backed Dunfermline-style rescue, nationalising the West Brom and selling off its assets.

There have also been reports that the Financial Services Authority wanted to push the West Brom into a merger, but talks with rival building society The Coventry failed.

But the West Brom is adamant there have been no talks with either the FSA or the Treasury about any takeover or rescue.

Sources also deny suggestions that the annual report has been delayed because auditors at KPMG have not decided whether to sign off the accounts or "qualify" them.

West Brom spokesman Brian Seymour-Smith said: "We cannot comment on speculation. We are looking forward to announcing our results on June 15, the date always planned by our new finance director, Jonathan Westhoff.

"We will be happy to address any questions or issues at that time."

The society is expected to announce substantial losses next Monday, because of bad debts on commercial property and its exposure to buy-to-let lending – both areas hit by the credit crunch.

When rumours about West Brom started last month, it declared: "The board of the West Bromwich Building Society believes that the society is well-capitalised, able to meet all its obligations in full and has a long-term future as an independent mutual society."