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Strong half year results from enlarged Yorkshire Building Society

Yorkshire Building Society, the UK’s second largest building society, announces a strong financial performance in the six months to 30th June 2010 following the successful completion of its merger with Chelsea Building Society on 1st April 2010.

Key highlights

  • Group pre-tax profit £65.4m – core operating profit £53.2m
  • Group assets increased by 37% to £31.1bn – reflecting the merger with Chelsea Building Society
  • Strong capital position – Core Tier 1 capital ratio 11.8%, total solvency ratio 15.2%
  • Liquidity maintained at prudent level of 24.2% - well above regulatory requirements
  • Total mortgage balances of £23.3bn
  • Gross mortgage lending up 71% compared to same period last year
  • Member savings balances of £22.7bn – 97% of mortgages are funded by savings balances
  • Maintained asset quality –  loans in arrears by 2.5% or more (including possessions) by volume broadly steady at 1.73%, whilst actual number of cases in arrears has fallen by over 7% in the last six months.

Merger update

  • Merger overwhelmingly approved by members of both societies and completed on 1st April
  • Integration is well advanced
  • Performance of Chelsea business is ahead of expectations
  • To date, the merger synergies realised have exceeded the costs of integrating the two societies
  • Already realised one third of the cost savings anticipated over the next 18 months.

Other highlights and Member benefits

  • Achieved over 1,000 ‘Best Buy’ mentions in national newspapers for our mortgage and savings products
  • Launched an internet savings service for the Chelsea brand – the first time members have been able to do business with the Chelsea online
  • Awarded the Moneywise Consumer Award for ‘Best Cash ISA Provider for Service’ and shortlisted for a number of Moneyfacts awards.

Iain Cornish, Chief Executive of Yorkshire Building Society said:

"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".

30 July 2010


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Yorkshire Building Society is one of the largest building societies in the UK. We offer a range of financial products and services including: savings & investment accounts, insurance products, loans, mortgages and more.

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Yorkshire Building Society is authorised and regulated by the Financial Services Authority (FSA).