Paragraph 4 Average rates
Subject to the following provisions of this paragraph, the annual business statement of a society shall state the following particulars in respect of the society, in relation to the financial year with which it deals, with regard to each of the major categories of interest bearing assets and liabilities:
the average amount outstanding during the financial year;
the interest earned on such assets;
the interest paid on such liabilities;
the average yield on such assets; and
the average rate paid on such liabilities.
Where the society is a group accounts society, the particulars required to be stated by paragraph (1) above in respect of the society shall be stated in respect of the society and its relevant subsidiaries, but this subparagraph shall not be taken to prohibit the stating in addition by a society of those particulars in relation to the society alone.
The annual business statement shall include an explanation of what is represented by each of the particulars referred to in subparagraph (1) above and, where subparagraph (2) above applies, a statement of the basis on which particulars are stated by virtue of that subparagraph.
In this paragraph—
the major categories of interest bearing assets are—
liquid assets; and
secured advances;
the major categories of interest bearing liabilities are—
retail funds and deposits; and
non-retail funds and deposits;
“the average amount outstanding during the financial year”, in respect of each major category of interest bearing assets and liabilities, means the amount produced by halving the aggregate of the assets (or, as the case may be, liabilities) attributable to that category in the balance sheet in respect of that and the preceding financial year, and for this purpose the amount attributable to secured advances shall be the aggregate of the amounts in Asset items 2, 3, 4(a) and 4(c) of the balance sheet in Part I (or, in the case when group accounts are used, Part II) of Schedule 2 above;
“the interest earned”, in respect of each major category of interest bearing assets, means the amount (or aggregate amount) shown as interest receivable in the income and expenditure account which is attributable to that category;
“the interest paid”, in respect of each major category of interest bearing liabilities, means the amount shown as interest payable in the income and expenditure account which is attributable to that category;
“the average yield”, in respect of each major category of interest bearing assets, means the amount (or aggregate amount) in paragraph (d) above attributable to that category as a percentage of the amount in paragraph (c) above attributable to that category; and
“the average rate paid”, in respect of each major category of interest bearing liabilities, means the amount in paragraph (e) above attributable to that category as a percentage of the amount in paragraph (c) above attributable to that category.