Big plans at building society

West Bromwich Building Society has unveiled plans to open new branches and create more jobs across the region just days after escaping financial collapse.

A groundbreaking deal rescued the business and now chief executive Robert Sharpe has launched a "back to basics" strategy to secure the society's long-term future.

That will involve opening new branches across Birmingham in a wave of expansion for the 160-year old building society, and a revamp of the existing 46 branches.

"We are a Black Country business but if you look five miles down the road at the country's second city, it doesn't have its own building society," said Mr Sharpe, who was parachuted into the top job just nine months ago.

"I think that offers us an opportunity to expand our presence into the greater Birmingham area."

"The city council has been talking about setting up a municipal bank. Rather than setting up a bank I'd like to see if we can help them achieve their goals, such as supporting local businesses."

There have been no talks with the council so far, said Mr Sharpe, and the society's expansion plans were still at an early stage.

"But we are going back to basics. That means raising funds from retail savings, rather than the wholesale money markets, and lending only for residential mortgages to people within this region," he said.

It was the move into areas such as buy-to-let mortgages and commercial property that plunged the West Brom into financial crisis earlier this year and led to a near-£50 million loss.

The society was at risk of collapse when the Financial Services Authority came up with new financial instrument, Profit Participating Deferred Shares or PPDSs.

This enabled the West Brom to convert £182.5 million of debt into shares in the business, turning it from the weakest society in the UK into the third strongest.

By Simon Penfold