YBS says it has helped more people with key financial needs than ever before
Yorkshire Building Society says it has managed to achieve record levels of support for borrowers and savers, as it publishes its final results for 2021 today.
YBS provided 75,732 mortgages (2020: 72,172) over this period and backed a record number of first-time buyers.
Mortgage balances increased to £41.9bn (31 December 2020: £38.8bn), the highest in YBS’s history.
The Bradford and Leeds-based Society has also reported statutory pre-tax profits of £320m (2020: 161.3m) and total income of £577.6m (2020: £454m).
Stephen White, interim chief executive, said: “Our mutual model has helped us to deliver record savings and mortgage balances allowing us to both increase our savings rates and help a record number of first-time buyers.
“The strength of our mortgage book has helped us to support borrowers facing serious financial difficulty and, at a time of rising house prices, release some of our provisions.
“At the same time, the ongoing work to improve the efficiency of the Society and reduce cost alongside good commercial judgments and disciplines has meant core operating profit increased to £297.3m, allowing us in turn to increase our capital and reserves and reinvest for the long-term.”
YBS adds that it was able to pay 0.32% above the market average to savers, which delivered an additional £107m of interest to them.
It notes that while the number of mortgage approvals fell in October, following the stamp duty holiday coming to an end in September, they grew again in November and December and exceeded pre-pandemic averages.
Despite rising house prices, the Society says demand remains strong although larger properties with more outside space proved more popular as people reassessed their needs following a year of lockdowns.
In its outlook, the business predicts competition in the mortgage market will remain high. And it says its own mortgage proposition will be developed to help borrowers improve the energy efficiency of their properties in line with the climate change agenda.
White said YBS has committed more than £1.8m of investment over two years (2021/22) as part of its agenda focusing on skills, employment, financial education and wellbeing.
As part of this programme, it is expanding its partnership with Citizens Advice, which involves expert advisors from this organisation offering their service to members of the public in private rooms at YBS branches one to two days a week.
The advisors have been operating from six branches, but will now be present at 18 YBS bases.
White said: “The current economic climate with rising inflation, energy price increases and general cost of living pressures has brought into stark relief the issues that many people are facing around financial wellbeing.
“That is why I’m proud to announce the expansion of our partnership with Citizens Advice. It is a timely undertaking by both organisations to be able to increase the offering of support to those in need in our communities.”
He noted so far, 60% of appointments with Citizens Advice experts in YBS branches have been with non YBS customers and 60% of people using the service needed help with benefits, tax credits and Universal Credit.
YBS branches offering the Citizens Advice provision include 12 in Yorkshire: Barnsley, Brighouse, Castleford, Dewsbury, Doncaster, Halifax, Huddersfield, Leeds, Rothwell, Sheffield, Wakefield and York. The remaining six branches are in the North West.
