2015 Interim Results
July 23, 2015
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 has today announced a good first half performance for 2015, increasing core operating profit by 7.8%, raising mortgage balances by more than £600m and helping 3,386 first-time buyers to get on the housing ladder.
The UK’s second-largest building society has remained true to its mutual values, helping people save for the future and buy their own home through offering competitive rates, including some of the lowest mortgage rates available to UK borrowers.1
Yorkshire has also continued to play a key role in supporting the communities in which it operates by creating new jobs and pledging to help 150 young people over the next five years to start their careers through a new apprenticeship programme.
I’m pleased Yorkshire Building Society Group’s robust financial strength has once again been demonstrated through our performance in the first six months of 2015.
We have continued to deliver on the goals and aims that our organisation was originally established to achieve, which we remain true to today – helping people to become homeowners and save for their futures. We have performed well in our core business areas, completing 15,430 mortgages and opening more than 85,000 savings accounts.
Our healthy financial position allows us to offer borrowers some of the most competitive rates in the market. We were proud that in the first six months of this year, we helped 3,386 people take a step on to the housing ladder, with two in five of our house purchase mortgages provided to first-time buyers.
But this level of lending can only continue if we can retain our profits and reinvest them back into our business. The Government’s proposal to introduce a bank surcharge of 8% on all banking services organisations’ profits over £25m will unfairly hit the six largest building societies, with these institutions paying about a third4 of the additional £1.7bn5 expected to be raised over five years.
As the six largest building societies were responsible for 50% of the UK’s net mortgage lending in 2014 6, a tax which could impact our ability to fund growth in lending could have significant consequences for the UK mortgage market. As well as funding lending, we also use retained profit to invest in the business and to provide savers with overall returns that beat the market average.7
How we treat our members is vital to us. We were very pleased to be ranked in the top three most trusted financial services providers in the UK, and the most trusted in Yorkshire8. This achievement is a credit to all our people who are committed to delivering outstanding customer service.
We are hugely proud of our community and charity activity which remains an ongoing commitment of the Group. We took great strides towards our goal of raising £500,000 for Marie Curie by the end of 2016, reaching more than £350,000 in the campaign’s first year.
The first half of this year has demonstrated how, as a mutual organisation with no external shareholders to satisfy, we focus on maintaining financial strength and stability. We operate in an increasingly competitive mortgage market and will continue to lend responsibly, remaining true to our mutual values of putting our customers and colleagues at the forefront of everything we do.
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