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Leeds: profits and members up

Leeds Building Society has reported a £0.2m rise in half year pre-tax profits to the end of June 2012 compared with the same period last year

By Samantha Downes | Published Aug 08, 2012 | comments

Leeds, the UK’s fifth largest building society also reported a 20 per cent increase in residential lending to £769m when compared with the same six months in 2012.

Its pre-tax profit increased in the first half of 2012 to £27.1m, compared with £26.9m at the end of June 2011, while capital and reserves rose to a record £598m.

Net lending was 79 per cent higher at £311m and savings balances grew by £189m compared with £127m last year. Total savings balances totalled £7.54bn at the end of June 2012.

The society also reported 32,800 new members, up from 21,000 at the end of June 2011, taking total membership to 696,000.

Leeds’ wholesale funding ratio of 19 per cent compares with 18.5 per cent at 30 June 2011 and its liquidity ratio is 20.2 per cent

Peter Hill, chief executive of Leeds Building Society said: “New loans rose to £769m, which represents double our market share. Over a quarter of these mortgages have helped almost 2,500 first-time-buyers purchase their first home. This increased lending confirms our commitment to supporting the UK housing market and the wider economy.

“Our very strong lending was possible because of our ability to attract retail deposits, which grew by £189m.”

“Savers were attracted by the security and value we provide, and this half year performance is significantly above our market share. Furthermore, this success means that all of the Society’s residential mortgage balances are funded entirely by retail deposits.

“We continue to focus on efficiency, which is demonstrated by our excellent cost ratios. Our cost income ratio increased slightly to 33 per cent, from 31 per cent, as did the cost asset ratio, from 47p per £100 of assets to 48p, as we invest in the business. These remain very favourable when compared to the average of the major building societies.

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