Profits up at Yorkshire Building Society amidst volatile market

Yorkshire Building Society (YBS) has today reported statutory pre-tax profits of £502.5m (2021: £320m) in its 2022 full year results.

The society, which notes it has achieved growth in the face of significant levels of economic disruption, says total gross mortgage lending remained high, matching 2021 volumes at £10.3bn. 2022 net lending was £3bn (2021: £3.6bn).

Alasdair Lenman, interim chief executive, said: “The society’s performance this year demonstrates our clear commitment to supporting our members and to delivering against our purpose of providing Real Help with Real Life.

“2022 saw some of the best outcomes we have seen as an organisation, across areas including the quality of customer service provided, the number of members and customers we have supported, and the robust financial results we have delivered – all while operating within a context of elevated unpredictability and uncertainty.”

YBS warns challenges are likely to persist, with a key uncertainty being how long inflationary pressures will continue, and what this will mean for the cost of living and the functioning of markets, including the market for housing.

However, YBS says the security of its financial position has been further strengthened by its 2022 performance and these elevated profits will support capital reserves and future sustainability.

The society’s update adds: “The effective generation of capital is important in ensuring resilience in the event of an economic shock or downturn, and will support the society in preparation for anticipated changes to capital regulations and requirements.

“Yorkshire Building Society will continue to prioritise the areas it has over the many years of its operations including responsible lending, robust risk management, and operational resilience.”