Yorkshire Building Society 2013 Financial Results
Group achieves record levels of profit before tax and record gross lending as it enters its 150th year of delivering the benefits of mutuality to borrowers and savers
26 February 2014
BANK RATE CHANGE
On 2 November 2017, the Bank of England announced that the Bank Base Rate would increase with immediate effective from 0.25% to 0.50%.
Yorkshire Building Society Group has today announced a very strong financial performance in 2013 as it continues to strengthen its position as a trusted alternative to the big banks.
The UK’s second largest building society achieved core operating profit of £152.0m and record profit before tax of £199.3m at the same time as delivering tangible improvements for customers through investment in products and services.
Gross lending reached a record £6.8bn, up 48%, and net lending more than trebled to £2.0bn as the Group moved into its 150th year of supporting people, including first time buyers, to buy the home they want.
I am delighted to present an outstanding set of financial results for the Group and am very proud of our achievements in 2013.
It is 150 years since the building society from which the Yorkshire traces its roots was established and our financial performance and prudent approach in 2013 demonstrates we are still delivering on the promise of giving customers a trustworthy alternative to the banks.
We lent £6.8bn in 2013 and helped thousands of home buyers and remortgage customers by offering more best-buy mortgages than any other provider4. That included our lowest ever fixed rate mortgage and support for first time buyers by launching the biggest range5 of 5% deposit mortgages available in the UK.
As well as providing competitive mortgages, we also worked hard to offer our members a range of strong savings accounts at a time when interest rates remain at a historic low. We have sought to reward the loyalty of our members during necessary rate reductions, as well as protecting rates on regular saver and children’s accounts.
We have seen encouraging levels of interest in our face-to-face financial advice service which is available to all at a time when many other financial providers have introduced harsh minimum investment limits or withdrawn services completely.
The first 12 months of our previously announced investment programme have laid the foundations for further improvements in the coming years and already delivered tangible benefits for customers, including the launch of our 95% LTV mortgages, a major upgrade to our online and mobile services and refurbishments to 26 branches.
Our capital and liquidity positions remain very strong and our overall financial performance puts us in an excellent position to maintain our growth as an organisation, which now includes our new office in the centre of Leeds in addition to our sites in Peterborough, Cheltenham and our principal office in Bradford where a significant refurbishment is underway.
Over the past 150 years we have earned the trust of customers and communities who rely on us to keep their long-term interests at the heart of what we do and I am honoured to lead my colleagues in continuing to work to those values.
Appendix 1: (32 KB) containing
1 This includes a number of significant non-core items that are detailed in the reconciliation of core operating profits (see Appendix 1)
2 Source: Average rates based on Savings stock from CACI’s Current Account and Savings Database (CSDB), currently covering 86% of the retail savings market. Data as at the last working day of October 2013.
3 Source: Moneywise Customer Service Awards 2013
4 Source: Presswatch Financial from Kantar Media
5 Source: Moneyfacts Analyser, November 2013
6 Source: Presswatch Financial from Kantar Media
7 Source: Presswatch Financial from Kantar Media
8 Source: Average of monthly Nunwood Customer Experience Survey of Group customers 9 Source: Nunwood Customer Excellence 2013 rankings — a national survey of 7,500 UK consumers conducted in October 2013.
10 Source: Financial Ombudsman Service complaints data 1 January — 30 June 2013 resolved cases.
11 Source: Council of Mortgage Lenders: Lending secured on dwellings 2013
12 Source: Bank of England: Monthly changes of total sterling net secured lending to individuals and housing associations
13 Expressed as a percentage of outstanding balances, including repossessions
14 Source: Bank of England household savings data
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