Mortgages  

Skipton reveals pre-tax profit of £34.4m

Skipton Building Society’s pre-tax profits increased to £34.4m for the first half of 2013, up from £21.7m in the first half of 2012.

In its half year results, published today (31 July), Skipton said it has seen gross mortgage lending increase by 64 per cent to £1.09bn and its net lending grew by £455m, representing a growth in its UK mortgage balances of 4.4 per cent in a period “where overall UK residential mortgage lending was flat”.

The building society says it has seen “continued improvement” in the performance of its mortgages and savings division where profits increased by £12.5m to £16.2m, compared with £3.7m for the six months ended 30 June 2012.

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As at 30 June 2013, Skipton had drawn down £410m under the Funding for Lending Scheme and increased net mortgage lending in the UK since its launch by £656m.

Furthermore, Skipton’s mortgage arrears have fallen further and the total number of loans where the arrears balance was greater than 2.5 per cent of the total outstanding balance was 1.16 per cent at 30 June 2013.

This compares favourably to the latest Council of Mortgage Lenders industry average figure of 1.42 per cent as of the first quarter of 2013.

While the charge for losses on regular mortgages has fallen, Skipton has increased its provision against equity release loans by £5.3m, “having taken a more conservative view of long term house price rises”.

David Cutter, group chief executive of Skipton, said: “I am delighted to report a 59 per cent increase in profits at the same time as growth in mortgage and savings balances and capital ratios.

“I am particularly pleased at the way in which we have achieved our results. We remain committed to being an organisation that cares about our customers, continually offering good value products to our members, backed up by outstanding personal service.”