Leeds Building Society has reported record results for the first half of 2017, despite the “political and economic uncertainty.”
The UK’s fifth largest Society saw pre-tax profit rise to £63.2m, which is a 9% increase on the £58m achieved during the same period last year.
This growth has been driven by the Society helping 22,410 more people have the home they want with record new residential mortgage lending of £2.1bn, up by 10% on 2016’s £1.9bn.
During this period, Leeds Building Society increased total membership to 778,000 (December 2016: 756,000), the highest in its history.
The Society was also able to reinvest in the business in the first half of 2017, completing a refurbishment programme of its national network ahead of schedule and under budget. This included the relocation of the Society’s London branch and a small number of closures.
Peter Hill, chief executive officer, said:
“I’m proud to report another strong performance for the first half of 2017, in a climate of political and economic uncertainty.
“We make our business decisions in the best interests of all our members, whether they’re savers or borrowers. Because we’re a mutual we are able to take a longer-term view so we can grow in a responsible and sustainable way and help as many people as possible to save and have the home they want.
“That’s enabled us to increase our mortgage lending across a balanced product range while supporting borrowers who aren’t well served by the wider market.
“In the first half of 2017, we increased savings market share and deposits by over £1.3bn, a new record for a half-year period, taking total savings balances to £12.5bn.”
He did, however, comment on the concerns surrounding the fallout from Brexit. Peter added:
“The repercussions of last year’s EU Referendum vote are likely to be felt for some time to come, compounded by the UK General Election result in June.
“House price growth has softened and the number of mortgage approvals in the market has remained relatively flat, at a time when lenders are also working through the detail of extensive regulatory change.
“Despite this outlook, the Society’s strong foundations ensure it remains financially stable and secure, and well-placed to meet any challenges that may arise in the remainder of 2017 and beyond.”
Written by: Nick Hill