Yorkshire BS sees pre-tax profit fall to £80m

The Yorkshire Building Society has posted a pre-tax profit of £80.1m for the first six months of this year, down from £82.8m for the same period a year ago.

The UK’s second largest building society’s core operating profit fell from £92.4m for the first six months of 2012 to £82.6m for the same period this year.

Gross lending increased to £2.5bn, compared with £2.4bn for the first half of 2012, but net mortgage lending was just £450m, down from £523m at the start of 2012.

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Total mortgage balances grew to £28bn, compared with £27.6bn at the end of 2012.

However Chris Pilling, chief executive of Yorkshire Building Society, said advisers could expect more net lending in the second half of this year.

He pointed to a five-year investment programme launched by the society to enhance its products and services and develop new systems and technology for the benefit of its customers.

Mr Pilling said: “Our figures for the first six months of 2013 are very pleasing and reflect our consistent, positive financial performance.

Net lending has been solid so far this year and we strongly expect this will increase further in the second half of 2013.

“These interim results show that our responsible approach and long-term financial stability has resulted in a strong, consistently well-capitalised mutual playing a major role in the modern UK financial services sector.”

He added that the new phase its its growth includes the planned opening in the coming months of a new office in Leeds, which will see up to 1,000 colleagues based in the city centre, as well as investing £11m in our principal Bradford site and £5m invested in our offices in Cheltenham and Peterborough.

Mr Pilling said: “This investment will create modern, flexible environments from which to deliver great value and service to our members and I am delighted that this will allow us to create more than 200 additional jobs, split broadly equally between Bradford and Leeds, by the end of the year.

“These new jobs will cover a variety of roles across the society and reflect our on-going ability to make a positive impact on our communities as we continue to grow as an organisation.”