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Leeds BS reports 10% increase in half-year profits

Leeds Building Society reported a 10 per cent increase in pre-tax profits for the first half of 2010, rising from £16.3m in June 2009 to £18m in June this year.

The building society, which is the UK’s fifth largest, also attracted 34,000 new members, taking total membership to a record level of over 688,000.

Savings balances rose by £254m to a record level of £7bn while capital and reserves reached £515m even after the buy back of £39m of subordinated debt.

The ratio of wholesale funding was reduced to 20 per cent compared to 23 per cent as at December 31, 2009.

Chief executive Ian Ward says: “Leeds Building Society has achieved a strong financial performance for the first half of the year. Our highly efficient, successful, sustainable business model continues to deliver good results, with pre-tax profit increasing by 10 per cent, to £18m, compared to the same period last year.

“Total membership increased to almost 690,000 and our savings balances rose by £254m. This half-year performance was £177m above our natural building society market share.

“Throughout the first half of 2010, we offered a wide range of mortgage products, with new lending totalling £400m, enabling many people to remortgage or buy their first home. All of the Society’s residential mortgage lending is funded entirely by retail savings and we are targeting £1bn of new lending this year.

“Efficiency remains a cornerstone of our success and this is highlighted by our excellent cost ratios. Our cost income and cost asset ratios remained very strong at just 35 per cent and 45p per £100 of assets. These are very favourable compared to the average of the major building societies, which were 86 per cent and 83p respectively, at the end of 2009.”


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