Leeds BS increases new mortgage lending 25% in 2011

In its annual results, the mutual said that mortgage lending was one and a half times its "natural market share", with £290m of the total going to help 4,000 first-time buyers.

The Leeds revealed it plans to increase its mortgage lending further in 2012 and increase the availability of 95% LTV loans.

In a record-breaking year, operating profit at the Leeds reached its highest ever level, rising 21% to £102.4m and beating the previous record of £84.5m set in 2010, while pre-tax profit increased 19% to £50.2m.

Savings balances also hit a new record, rising by £329m to a high of £7.4bn, while total membership rose 58,000 to a record 691,000. Capital and reserves increased by 8% to another record of £572m.

Its strong profitability means the Leeds remains one of just three building societies to hold an ‘A' long-term credit rating from both Moody's and Fitch, it said.

The Leeds' average LTV on new advances in 2011 fell to 51% from 53% the previous year, while residential arrears of 1.5% or more of the outstanding mortgage balance reduced to 3.23% compared to 3.25% in 2010.

The charge for specific provisions for arrears fell by £6m to £34m in 2011, however, the collective provision charge increased from £4.5m to £15m to cover any potential further deterioration in 2012.

Leeds said that, as a result, its total residential and commercial balance sheet provisions increased to £85m in 2011 from £61m in 2010.

Peter Hill, chief executive of the Leeds, said: "Leeds Building Society is both independent and successful, with a strong capital base and has been consistently profitable, despite the challenging environment.

"Throughout the downturn, we have continued to invest in the business and be an active player in the savings and mortgage markets, the benefits of which can be clearly seen in our results.

"We are in an excellent position to continue to focus on doing what we do best: providing good value for money products backed up by excellent service, delivered by our highly professional staff throughout this year and beyond."