Profits down at the Yorkshire

Yorkshire Building Society

Yorkshire Building Society has published its results for the first six months of 2013.

It has reported reduced levels of profit but increased levels of mortgage lending. However, net mortgage lending was down.

The Society has also begun a five-year investment programme to enhance its products and services and develop new systems and technology.

In addition, the Society has created 100 new jobs so far this year and is expecting to create an additional 100 new jobs by the end of 2013, providing a boost to the Bradford and Leeds economies.

Group pre-tax profit was £80.1m, compared with £82.8m for the first six months of last year. Core operating profit was £82.6m (June 2012: £92.4m).

Gross mortgage lending rose to £2.5bn from £2.4bn but net mortgage lending was £450m compared to £523m reported in June 2012.
Total mortgage balances grew to £28.0bn from £27.6bn in December 2012.

Chris Pilling, Yorkshire Building Society chief executive, said: “Our figures for the first six months of 2013 are very pleasing and reflect our consistent, positive financial performance.

“Our fundamental aims as a building society – helping people to save for the future and buy their own home – are unwavering and being so closely rooted in our communities makes us ideally placed to achieve them.

“Net lending has been solid so far this year and we strongly expect this will increase further in the second half of 2013.

“These interim results show that our responsible approach and long-term financial stability has resulted in a strong, consistently well-capitalised mutual playing a major role in the modern UK financial services sector.

“I believe the excellent service the Yorkshire provides members and the trust they place in us demonstrate how we are providing a credible and successful mutual alternative to the big banks.

“Our continued financial strength has allowed us to begin the significant investment programme, which we announced earlier this year, to further improve the quality of service we deliver to our members.

“The new phase in our growth includes the planned opening in the coming months of a major new office in Leeds, which will see up to 1,000 colleagues based in the city centre, as well as investing £11m in our principal Bradford site and £5m invested in our offices in Cheltenham and Peterborough.

“This investment will create modern, flexible environments from which to deliver great value and service to our members and I am delighted that this will allow us to create more than 200 additional jobs, split broadly equally between Bradford and Leeds, by the end of the year.”

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