Yorkshire Building Society in profit but hit by banking crisis

YORKSHIRE Building Society has reported annual pre-tax profits of £8.3m after being hit by factors including helping struggling banks and writedowns on some investments.

The society’s profits figure was down 85% from £54.6m in 2007.

Although it achieved core operating profits of £53.2m, earnings were hit by a £14.7m charge for the cost of bailing out some banks, the increase in provisions for bad mortgages, and taking the decision to not pass interest rate cuts on to savers.

The Bradford-based society said it had no losses from failed institutions including Icelandic banks or Lehman Brothers and that it had been wary not to lend in the commercial property or buy-to-let mortgage markets.