The society said this drop in mortgage income was due to high levels of borrowers refinancing. It also said this further suppressed its net interest income.
During the year, Leeds BS added £1bn in net mortgage lending.
The society’s profit before tax dipped from £116.9m in 2018 to £88m in 2019, which it said it anticipated on account of a fair value measurement reduction of £19.7m under International Financial Reporting Standards (IFRS).
Strategy for the year
A mortgage hub will be phased in this year, as part of wider enhancements to Leeds’ IT systems. The hub is expected to simplify the application process for both brokers and borrowers.
The society will also be making improvements to its new head office in central Leeds which it said will offer “substantial environmental benefits”.
Richard Fearon (pictured), who completed his first year as chief executive officer, said both projects would bring efficiency savings to help it deliver better service to its members.
Fearon said: “Last year we carried on paying above the market average on savings and our net mortgage lending approached £1bn, in spite of fierce competition.
“A reduction in our profit before tax was anticipated and, while we expect profits in the short to medium term to remain at lower levels than in recent years, they’ll be at the right level to support planned, sustainable growth, and add to our reserves.”
