Financial mistrust presents opportunities for Yorkshire Building Society
YORKSHIRE Building Society today reported an “extremely positive” annual performance and said it was benefiting from trust in the banking system being at “an all-time low”.
The UK’s second-largest building society saw core operating profit rise by 27% to £163m and increased its lending by 46% in 2011.
The Yorkshire said its performance reflected merger and acquisition activity it undertook during the year.
Member savings balances increased by more than 20% to £26bn, mortgage balances increased by 14% to £26.7bn and total assets increased by 9% to £32.6bn.
Chris Pilling, chief executive of Yorkshire Building Society, said: “This performance shows significant growth in mortgage and savings balances, increased level of operating profit, stable net interest margin and robust capital and liquidity positions despite the continuing challenges presented by the economic and market conditions.”
Mr Pilling paid tribute to former chief executive Iain Cornish and said he had left the building society with a “very bright future”.
“The Society has a long-held reputation for delivering outstanding value and excellent service to its members and as the new chief executive I have inherited a fantastic legacy,” he said.
Mr Pilling (pictured right) said the Yorkshire’s strategy in 2011 had been to provide value to savers and it had helped 5,475 first-time buyers get onto the property ladder.
“Our focus for 2012 will be to ensure that we take full advantage of the opportunities presented by our newly enlarged business,” said Mr Pilling, referring to Yorkshire’s merger with Norwich & Peterborough Building Society and acquisition of Egg Banking’s £430m mortgage book and £2.5bn savings business.
He added: “Looking forward, we will continue to develop and invest in the attributes of the Society that make it successful and differentiate us from our competitors.
“It is clear to me that when trust in banks is at an all-time low, the Yorkshire’s success is based on our operating principles as a trusted independent mutual, our financial strength and the commitment, attitude and skills of our people.”
The Yorkshire maintained its core tier one capital ratio at 12.6% and also completed the integration of Chelsea Building Society into the Yorkshire.
New members increased by 27% to more than 3.3m and new lending spiked by 46% to £4.1bn.
