Absolutely right Tarvold. The undulating cycle of interest rates...

Absolutely right Tarvold. The undulating cycle of interest rates creates a cycle of undulating profits for all fixed rate financiers. When the rates go from high to low the hiatus created during the period of change is the "golden period" and when the rates go from low to high the hiatus created during the change is the more challenging period for fixed rate financiers. If management are nimble and act quickly they can increase the golden period or reduce the challenging period by arranging their funding on better terms and adjusting loan rates on terms to maintain a suitable NIM. When rates remain stable for long periods fixed rate financiers will grow according to there ability to gain revenue and assess credit wisely. SVR appear to be acting appropriately and honestly in my view.