In its annual results, the building society revealed its core operating profit was 163.2m last year, up 27% from 2010.
These results will almost certainly push Yorkshire higher up the table of top UK lenders. CML figures placed YBS 10th in 2010, with a 2.4% market share. In the pack just ahead of Yorkshire was Northern Rock in 7th place with £4.2bn, Coventry in 8th at £3.5bn and Co-Op in 9th with £3.3bn.
Meanwhile, in 2011, its mortgage balances increased by 14% to £26.7bn, compared with £23.3bn in 2010, while total assets increased by 9% to £32.6bn in 2011, compared with £30.1bn the previous year.
The group’s average loan-to-value was at 54%, compared with 56% in 2010.
The level of loans in arrears by three or more months, including possessions, reduced to 1.78% compared with 2.10% in 2010.
The society reduced its mortgage impairment provision charge by 25% to £30.1m, down from £40.8m in 2010.
Yorkshire’s merger with Norwich & Peterborough Building Society (N&P), which took place on 1 November 2011 and its acquisition of the savings and mortgage balances of Egg Banking plc, on 31 October 2011 have aided its balance sheet.
Last year also saw the finalisation of Chelsea Building Society’s integration into the Yorkshire. The Society said it has achieved annual cost synergies of £33m following the Chelsea merger.
Chris Pilling, chief executive of Yorkshire Building Society, said: “This performance shows significant growth in mortgage and savings balances, increased level of operating profit, stable net interest margin and robust capital and liquidity positions despite the continuing challenges presented by the economic and market conditions.”
Pilling added that the society’s focus for 2012 will be to take full advantage of the “opportunities presented by our newly enlarged business.”
“This will include the effective integration of N&P and the Egg business, delivering planned synergies and developing the range of products and services we offer to members by leveraging the capabilities and expertise we have acquired in our recent transactions.”
