2012 Interim Results
Yorkshire Building Society announces strong interim results and an increase in lending.
July 26, 2012
Yorkshire Building Society, the UK's second largest building society, has reported another strong financial performance for the first six months of 2012. During the period the Group increased its lending to new borrowers and boosted existing borrower retention whilst strengthening its robust capital position and maintaining asset quality.
This positive performance in the first half of the financial year, together with the Yorkshire's recent merger and acquisition activity, underlines its position as a strong and resilient independent financial mutual and reinforces members' confidence and trust in the Group.
"The strong performance of the Group in the first six months of 2012 reflects our track record for adopting an ambitious but prudent approach to our business. Whilst the economic environment remains uncertain we are confident that the Group is very well placed to continue to grow and prosper, providing our members with a credible and secure alternative to the high street banks and an organisation in which they can continue to place their trust.
"Our activities remain focused on our members and the communities we serve and I am pleased that the Yorkshire is bucking the trend with investment in new branches and agencies. We are fully committed to retaining a strong presence on the high street, providing customers with access to a wide range of good value financial service products backed with the exceptional personal service they value. It is pleasing to report our strongest ever levels of customer advocacy across the Group, through the Net Promoter Scores. This is further evidenced by a recent increase in activity in our branches, with new customers opening savings accounts and switching to the N&P current account following the recent banking scandals, clearly recognising us as a credible alternative to our plc competitors. We have also continued to invest in our award winning internet and telephony channels, ensuring members can deal with us in whatever way they choose.
"Our purpose is to provide funding to enable people to own their own home and offer a safe home for those wishing to save. I am therefore proud that these results show an overall increase in our net lending, which we have achieved without changing our risk appetite, and growth in our retail funding which has been attracted at sustainable rates.
"Whilst we continue to operate in a period of change and increased regulation, we look forward with optimism to the opportunities which lie ahead. In particular, due to the importance we place on providing competitive mortgages, the Government's proposed 'Funding for Lending' scheme looks very interesting and we are examining the detail to see if there is an opportunity for us to use this in our funding mix. We were also encouraged that the Treasury in its recent White Paper supported the building society sector, recognising the inherent differences between the mutual model and that of our plc competitors. In addition, we welcome the Government's interest in different business ownership models and its desire to create a more diversified financial services market. We are keen to continue to contribute to these debates.
"Personally, it has been an amazing start for me as Chief Executive of the Yorkshire and it is a privilege to take this organisation forward, building on its strong legacy. I would like to take this opportunity to thank colleagues and members for their welcome and support."
2012 Group interim results (1260 KB)
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