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Yorkshire BS’ gross mortgage lending up 58% in H1

  • 26/07/2012
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Yorkshire BS’ gross mortgage lending up 58% in H1
Yorkshire Building Society, the UK’s second largest building society, increased its gross mortgage lending to £2.4bn in the first six months this year.

Yesterday, the Council of Mortgage Lenders revealed that Yorkshire increased its market share from 2.1% in 2010 to 2.9% in 2011, making it the eighth largest lender in the UK.

In its interim results, the society revealed net lending of £523m with total mortgage balances growing to £27.5bn, up from £27.0bn in December 2011.

It reduced mortgage impairment charges by 17%, while loans in arrears by more than three months by volume reduced to 1.38%, below the industry average of 1.96%, it said.

The society revealed it granted one in four loans to first-time buyers.

Chris Pilling, chief executive of Yorkshire Building Society said:  “The strong performance of the group in H1 reflects our track record for adopting an ambitious but prudent approach to our business.”

Pilling said the society is looking at the government’s Funding for Lending scheme.

“The 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.”

Yorkshire revealed that it has opened three branches in H1 with a further nine planned over the next 18 months.

Pilling added: “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 products backed with exceptional personal service they value.”

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 Chelsea Building Society’s integration into the Yorkshire. The Society said merger and acquisition costs stood at £9.8m in the six months to June.

The society said group pre-tax profits stood at £82.8m, up from £73.1m June 2011. Core operating profit increased by 2% to £92.4m.

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