2010 Interim Results
An enlarged Yorkshire Building Society announces strong half-year results
July 30, 2010
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The UK's second-largest building society has achieved a further strengthening of its capital position and delivered strong profitability, with core operating profits of £137m and profit before tax of £157m. It has increased new lending and attracted more savers while continuing to deliver financial security and long-term value to its 3.5m members.
The Society - the UK's ninth largest high street financial services provider1 - has today outlined plans to invest £160m in a five-year programme to improve products and services to its members as well as enhancing back-office systems, technology and people development.
The investment represents the next phase in the Society's growth following an active period of mergers and acquisitions which have been completed over the past four years.
Consistent and solid financial performance:
Continued growth as a trusted alternative to the major UK banks:
High levels of customer service:
Commenting on the results, Yorkshire Building Society Chief Executive Chris Pilling said:
"I am delighted with the whole Group's solid performance in my first full year as Chief Executive. I pay tribute to my hugely committed and talented colleagues for ensuring that we continue to provide the excellent service and value that our members expect from us.
"In 2008, the Yorkshire reported that it was well placed to emerge stronger from the economic crisis that was developing.
"Our latest financial results show that this is exactly what we have done - our core operating profit remains very strong and gives the Group the opportunity to invest significantly as we balance profits with delivering value to our customers.
"We are now embarking on another important phase in our growth. After completing a series of mergers and acquisitions we entered a period of integration while continuing to grow our business. Having consolidated that position, we are now investing in making the most of our expanded capability to enhance our products and breadth of services.
"The £160m we will invest over the next five years, including £60m in 2013, will improve our back-office infrastructure and staff development and enable us to meet customers' needs more quickly and robustly.
"Ultimately, this investment will support our commitment to our members and further contrast the Yorkshire with the many financial services providers which have scaled back lending, closed branches or walked away from providing face-to-face financial advice.
"These remain tough times for borrowers and, in particular, savers who have to contend with record-low interest rates. We remain committed to serving both of these parts of our membership, with a focus on their immediate priorities and our desire to provide long-term, reliable value.
"In the past few years, the financial sector has been undermined by a series of incredibly serious errors of judgement by the big banks which have left customers questioning who they do business with.
"As a mutual building society, answerable to our members and not external shareholders, we can be proud that we work to a different set of values which have trust at the core. Our values, combined with our continued financial strength, mean we are investing in the future with confidence."
The actions we took during 2009 provided the Group with strong foundations which have seen the Society return to healthy profitability.
"Our unwavering focus on providing members with financial security and long-term value is demonstrated in the strength of our capital and liquidity positions and the competitive products and services we provide to our loyal members. We are on target to almost double our lending in 2010 and have cautiously increased our activity in assisting first time buyers onto the property ladder. We have also continued to work hard to protect savers from the low interest rate environment.
"The integration with Chelsea Building Society is progressing extremely well and is ahead of plan. I am confident of delivering the target savings by the end of 2011. This achievement is in no small way due to the hard work and professionalism of our staff across the Group and I thank them for this terrific effort.
"Meanwhile we have not lost sight of our vision 'to be the best organisation that our customers do business with' and it is pleasing that once again nine out of 10 of our members trust us enough to recommend us to their family and friends".
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