The half-year results show the building society performed strongly despite the tough economic conditions, with new mortgage lending totalling £400m.
Chief executive Ian Ward revealed it was targeting £1bn of new lending by the end of the year.
However, borrowers continue to struggle with meeting mortgage repayments resulting in residential mortgage arrears of 2.5% of the outstanding mortgage balance or more rising to 2.32% in H1 2010.
Nevertheless, the charge for impairment losses and provisions for commercial and residential property reduced to £24m in the first half of 2010 compared to £26.6m for H1 2009.
Total balance sheet provisions increased to £77.1m for H1 2010 from £59.1m at the end of H1 2009.
Leeds Building Society increased its savings balances by £254m to a record for the lender of £7bn, £177m above its natural building society market share. It also attracted 34,000 new customers, bringing its total member base to a record of more than 688,000.
Leeds’ capital reserves remain strong £515m after the buy back of £39m of subordinated debt, while its cost to income ratio fell from 36% at the end of 2009 to 35%.
Ian Ward, chief executive of Leeds Building Society, said: “Our business model remains robust and successful as we continue to focus on efficiency, a prudent approach to lending, maintaining very strong levels of capital and high credit ratings.
“This, combined with delivering good value for money products backed up by excellent service to our members, means that we are in a very good position to deal with the challenging economic outlook for the remainder of 2010 and beyond.”
