Leeds’ mortgage lending figures rose £242m, up from £400m to June last year.
This June, the society re-entered the Sterling covered bond market and raised £250m of seven-year funding, satisfying its “long term wholesale funding requirements for 2011 and beyond,” it said.
Leeds’ reliance on wholesale funding has reduced from 20% to 18.5% to the end of June and the mutual repaid £395m of long term wholesale funding early from the Bank of England’s Special Liquidity Scheme.
The mutual said its mortgage lending is “nearly double the Society’s natural share of the overall mortgage market,” and sits at an average loan-to-value ratio of 52%.
However, it said: “As we forecast, and not unexpectedly in view of the pressures in the economy, some of our residential borrowers are experiencing difficulties in meeting their mortgage repayments. We are continuing to work with these customers through this period.”
Leeds’ arrears have improved to 2.29% from 2.32% at 30 June, 2010, it said, and the society also drove pre-tax profit up 49% to £26.9m, from £18m to 30 June 2010.
Leeds BS chief executive, Ian Ward, said: “New lending increased by 61% to £642m, which represents £275m above our market share. Almost a quarter of new loans, over £151m of completions, has enabled thousands of first-time-buyers (FTBs) to purchase their first home and this represents an 85% increase against the same period last year.”
Leeds attracted £127m of saving balances in the first half to £7.15bn.
However, commercial and residential impairment charges remain significant, despite reducing slightly to £23.2m in the first half of 2011, with total balance sheet mortgage provisions increasing to £79m at 30 June 2011 from £65m at 31 December 2010.
Ian Ward retires as chief executive on 9 August after 16 years. Peter Hill, the Society’s operations director, will succeed Ian on 10 August and become only the seventh chief executive in the Society’s 136 year history.
Ian Ward said: “It has been an enormous privilege and pleasure being chief executive of Leeds Building Society during such a successful period.”
