Mortgage lending growth boosts profits at Leeds Building Society

LEEDS BUILDING SOCIETY has reported record results for 2014 as it continued to build on its growing membership, mortgage lending and savings balances.

Chief executive Peter Hill said a strong profit performance driven by the growth in lending has enabled ongoing investment in the business.

The UK’s fifth largest building society reported profit before tax of £87.9m, up from £64.2m in 2013. Operating profit before exceptional items rose by 26% to a record £80.9m.

New residential mortgage lending increased by 24% to £2.7bn, while the mutual reported net residential lending of £1.1bn, its best-ever performance.

Savings balances grew by £560m to £9.2bn, the highest level in Leeds Building Society’s history.

The mutual attracted 69,000 new members, taking total membership to a record 721,000.

Chief executive Peter Hill said: “I am proud to report this excellent performance, which builds on similarly successful results we’ve delivered over the past three years.

“Our rise in profit has been driven by growth in mortgage lending across a balanced product range, and lower impairment provisions.

“I am pleased to report that we continue to attract mortgage business well above our market share and in 2014 we helped more than 7,800 first time buyers to step onto the property ladder, accounting for over a third of our total lending by value.

“Our innovation in the mortgage market has won further awards and industry recognition, with a positive reception from borrowers, intermediaries and sector experts. This includes significant progress on lending on new build homes and our support for the Government’s Help to Buy equity scheme. The latter are both examples of our efforts to support borrowers who are not well-served by the wider market.

“The continuing low interest rate environment has proved challenging for savers and we have worked hard to offer our members good value and to keep interest rates as high as possible for as long as possible.”