The PIBS (permanent interest bearing shares) I hold are their 7.971% (NABA) which is due to be called (redeemed) in March 2015. If this is not called, the reset rate is prevailing gilt rate + 4.45%. The second one I selected was their 6% (NANW) - call date December 2016. The price of both has continued to increase over the past year.
The current yield is around 7.6% & 5.6% respectively - however, the yield is only as good as the institution issuing the security. PIBS holders rank behind all other lenders and depositors in the queue for repayment should the institution fail. PIBS are also non-cumulative, so any unpaid interest/coupons do not have to be made up later.
The Society has this week issued results for the 12 months to end April 2014 (link via Investegate). The numbers look very impressive with income up 16% to £2.9bn, underlying profits up 113% at £924m and core tier 1 ratio up from 12.3% to 14.5% reflecting increased capital and reduction in risk weighted assets.