Rise in mortgages and savings balances boosts profits at Skipton Group
Skipton Group, which includes Skipton Building Society, Connells Group and other businesses, has reported a strong first half financial performance, with group profit before tax of £157m (Six months to June 2023: £148.9m).
The group says this reflects improvement in housing market activity, with estate agency Connells Group total revenue up 12% to £508m (Six months to June 2023: £453m). Total income for the group was £779.4m (Six months to June 2023: £754.9m).
It also records group mortgage balances growth of 10.8% year-on-year to £30.1bn, with 41% of new lending to first time buyers (Six months to June 2023: 31%).
Stuart Haire, Skipton Group chief executive, said: “Skipton’s first half performance has seen very encouraging progress to create a stronger, more sustainable and more purposeful Skipton Group.
“We delivered a strong first half financial performance, driven by growth in mortgages and savings balances, which has seen us generate a group profit before tax (PBT) of £157m.
“We’ve maintained our financial strength and disciplined approach to managing arrears, while also investing in our members, group capabilities, and strengthening our executive team.”
The group adds its UK residential mortgages in arrears by three months or more made up only 0.27% of mortgage accounts, well below the industry average of 0.94%.
The average number of properties available for sale across the group’s 1,200+ estate agency branches stood at 60, up from 50 per branch versus June 2023.
Meanwhile, in the rental sector, the group says it saw no significant signs of landlords exiting the market, with Connells Group re-letting over 77% (June 2023: 77%) of properties at the end of their tenancies.
Skipton Group notes it is continuing to see strong demand for savings and expects that to persist throughout the rest of the year while interest rates remain higher.
