Skipton builds back better as profits soar
Skipton Building Society is building back from the pandemic better, reporting pre-tax profits for the six months to 30 June of £159.2m.
The results are not only a 363% increase on the same period last year but also above the first half figure for 2019 and 2018 and actually mean the business has recorded results in the first six months of 2021 above its full year pre-tax profits for 2020. With this period’s figures buoyed by the UK’s fourth largest building society becoming the owner of the largest and most successful estate agency and property service providers in the UK.
The mutual noted that despite the last 16 months having been dominated by the coronavirus crisis progress continued to be made with its fully owned subsidiary Connells acquiring Countrywide in March in a deal which created a network of 1,235 branches across the country. The acquisition follows 25 years of Skipton owning Connells and will support growth by allowing “the combined business to provide an attractive offering to its customers”.
The buoyant property market provided strong foundations to support Skipton’s revenue growth, with the estate agency division seeing profits quadruple to £80.2m for the period.
David Cutter
David Cutter, chief executive of Skipton Group, noted that the mutual’s performance “seems a secondary interest” as the world continues to face the challenges of a pandemic but noted that the business was continuing to honour its “founding purpose” from 1853 which was to tackle the house and savings issues of Victorian society but had now “evolved” to help its one million customers to have a home and save.
Cutter said: “During the first six months of the year, Skipton has become the UK’s eleventh largest mortgage lender, with more people than ever having turned to us to help them have a home.”
Adding that the building society continues “to play a significant role in getting first time buyers across the UK the keys to their first homes”.
The buoyant property market which has supported the estate agency division also saw the mortgage market grow 4.4%.
Looking ahead Cutter said: “The pandemic has continued to disrupt all our lives, and our priorities continue to be keeping our customers and colleagues safe and being there when and where they need us. While we continue to adapt to meet evolving customer needs, our financial strength, mutuality and commitment to sustainability, together with excellent customer service and colleague engagement, see us look forward with confidence.”
