Skipton International Celebrates 15 Years

ST PETER PORT, Guernsey, November 15, 2010 /PRNewswire/ -- Skipton International Limited, the Guernsey based offshore savings and local Channel Islands mortgage specialist, is celebrating its 15th anniversary this month.

In the years since the company formerly known as Skipton Guernsey started business, much has changed in the market. Now, following a buyout, an amalgamation and a name change, Skipton International ( http://www.skiptoninternational.com/) is one of Guernsey's premier mortgage lenders and savings banks, both for residents and British expatriates globally.

The market for offshore deposits and savings in 1995 was very different, with a far greater number of small offshore savings banks operating out of both the Isle of Man and Channel Islands, all chasing the same savings business. Skipton Guernsey's product range was simple, easy to understand and attractive - three characteristics which the bank still sticks by today. In all probability, the 1995 saver with Skipton Guernsey would have had their savings in a Guernsey 60 account paying a gross interest rate of up to 7.00%, but in the 1990s, UK Base Rate stood at 6.625%.

When the company first opened for business, it was an innovative pioneer of the concept of the managed bank, a structure which allowed administration and IT systems to be subcontracted. Key advantages of such a business model are cost containment and flexibility, factors which enabled Skipton Guernsey to pay such relatively high interest rates.

    Skipton Guernsey outgrew this arrangement in October 2002, when it bought
a Guernsey mortgage book from Standard Chartered Grindlays and became a
mortgage lender (
http://www.skiptoninternational.com/mortgages/guernsey.aspx?utm_source=mainMen
u&utm_medium=textLink&utm_campaign=silWebsite&utm_term=guernseyMortgagesLink
) in Guernsey. May 2005 saw the next big change to the business when the
Jersey mortgage operation (
http://www.skiptoninternational.com/mortgages/jersey.aspx?utm_source=mainMenu&
utm_medium=textLink&utm_campaign=silWebsite&utm_term=jerseyMortgagesLink )
was started. At the time, the service was only available via a small
selection of key mortgage brokers, but today, this too has grown into a
thriving business with a wide range of partners in Jersey and also a direct
business model.

Since 2002, across both Guernsey and Jersey, the lending operation has developed from a GBP100 million book to one valued at nearly GBP500 million.

The well publicised credit crunch throughout 2008 and 2009 has also led to significant changes. In the UK, Skipton Building Society merged with Scarborough Building Society, whilst in Guernsey, Skipton Guernsey amalgamated with Scarborough Channel Islands Limited, which produced another big change - a new name and a significant uplift in staff numbers - as those from the old Scarborough Channel Islands joined the new Skipton International Limited.

With a wide range of local community activities ( http://www.skiptoninternational.com/news/?utm_source=mainMenu&utm_medium=textL ink&utm_campaign=silWebsite&utm_term=newsLink ) ranging from the sponsorship of Floral Guernsey to becoming the lead sponsor of the newly named Skipton Swimarathon, Skipton International also plays an active and high profile role in the local community. The Skipton Swimarathon is organised jointly by the local Lions Club and Round Table and the first Swimarathon was held in 1977. Since modest beginnings, Swimarathon has gone on to raise over GBP1 million pounds for good causes locally.

(Due to the length of these URLs, it may be necessary to copy and paste the hyperlinks into your Internet browser's URL address field. Remove the extra spaces if necessary.)

Managing Director Alan Bougourd is looking forward to the new challenges facing the bank. Commenting on the prospects for the next few years, he said, "There is no doubt that we have just come through one of the toughest periods on record. You simply need to compare the number of independent organisations offering savings and mortgage services today with the picture five years ago. That said, we are focussed on this business, we know it well and we have no plans to change that focus. We have always prided ourselves on our approach to customer service too, taking the time to make sure every customer had the right mortgage or savings account for their circumstances at the time and it is this personalised, individual approach which has stood us in such good stead. You could argue these are local values, we would not disagree, but we also see them as good business sense as well. In difficult markets such as at present, this ability to focus on the customer and their personal needs and to really take the time to talk to them is vital."

For more information on Skipton International savings products, visit http://www.skiptoninternational.com or call +44(0)1481-727374

Photos available on request:

Alan Bougourd, HE The Governor, Jeff Kitts, Chairman, Skipton Swimarathon

Editor's notes:

1) AER stands for Annual Equivalent Rate and illustrates what the rate would be if interest was paid and added each year.

2) Skipton International Limited (SIL) is a wholly owned subsidiary of Skipton Building Society (SBS), the UK's 4th largest building society with over GBP15 billion assets.

3) SIL is licensed under the Banking Supervision (Bailiwick of Guernsey) Law 1994, as amended.

4) Skipton Building Society has given an undertaking agreeing to discharge the liabilities of SIL in so far as SIL is unable to discharge them out of it own assets and whilst SIL remains a subsidiary of Skipton Building Society.

5) As a Licensed Bank in Guernsey, Skipton International Limited is a participant in the Guernsey Banking Deposit Compensation Scheme (the "Scheme") established by The Banking Deposit Compensation Scheme (Bailiwick of Guernsey) Ordinance, 2008 (the "Ordinance"). The following is a brief summary of the Scheme, but is not intended as a substitute for the actual wording of the Ordinance, a copy of which is available on request.

    - The Scheme only applies to 'qualifying deposits', which
      broadly means deposits made by natural persons for their own
      benefit; with a few limited exceptions such as, for example, deposits
      made by trustees of retirement annuity trust schemes, the Scheme does
      not apply to companies, trusts, partnerships or charities.

    - The Scheme will provide compensation in the event that a
      Licensed Bank is unable to repay its depositors. Under normal
      circumstances, payment will be made within 3 months of receipt of a
      valid claim form.

    - Compensation is limited to a maximum of GBP50,000 per
      individual claimant; in the case of a joint account each depositor
      would be entitled.

    - Total Scheme compensation in any five year period is limited
      to GBP100 million. If claims exceed this cap, compensation would be
      reduced pro rata. The cap also means that compensation in respect of
      any one bank cannot exceed GBP100 million.

    - The amount payable may be reduced if the Bank has any
      contractual right of set-off against the account. The Scheme is
      entitled to recover compensation from any funds subsequently paid
      out by the Bank.

    - Further information and a leaflet about the Scheme is
      available at:

      Website: http://www.dcs.gg

      Telephone: +44(0)1481-722756

      Post: P.O. Box 380, St Peter Port, GY1 3FY

6) Deposits made with SIL are not covered by the Financial Services Compensation Scheme established under the UK Financial Services and Markets Act 2000.

7) SIL places funds with SBS and thus its financial standing is linked to SBS. Publicly available information, including reports and accounts, is available from http://www.skipton.co.uk.

    8) Copies of the latest SIL audited accounts are available on request.

    Media contacts: Please contact:

    Guy Stephenson/Jennifer Duffy
    Nacelle Limited
    Tel: +44(0)20-8333-9125
    E-mail: [email protected]

SOURCE Skipton International