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Skipton’s gross mortgage lending up 64%

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David Cutter: ‘Delighted’ by increase in profits, savings balances and lending

Skipton Building Society increased its gross mortgage lending 64.3 per cent year-on-year in the first half of 2013.

In the six months to 30 June, the building society advanced roughly £1.1bn to borrowers, up from £663.4m in the first half of 2012, while net lending increased from £131.5m to £454.5m over the same period.

Around £103m of the society’s new lending was to 876 first-time buyers.

The society posted a pre-tax profit of £34.4m in the first six months of the year, up 58.5 per cent on the £21.7m posted in the first six months of last year.

Skipton’s profit figure in the first six months of the year was nearly as much as it posted in the whole of 2012, which was £35.4m.

The building society says profits were boosted by an increase in mortgage lending, combined with a fall in retail savings rates.

Retail savings balances increased by £319m to £9.7bn over the period.

The proportion of loans in Skipton’s mortgage book where the arrears balance was greater than 2,5 per cent of the total outstanding balance was 1.16 per cent at 30 June 2013, down from 1.37 per cent a year earlier. The Council of Mortgage Lenders average stood at 1.42 per cent in the first quarter.

Skipton has increased the total amount it has set aside for impairment losses on loans from £7.7m at 30 June 2012 to £12.2m a year later.

As at 30 June, Skipton had drawn down £410m under the Funding for Lending scheme and increased its net lending by £656m since the scheme’s launch.

The building society’s core tier 1 ratio increased from 11.08 per cent as at 31 December 2012 to 11.42 per cent at 30 June 2013.

Group chief executive David Cutter says: “I am delighted to report a 59 per cent increase in profits at the same time as growth in mortgage and savings balances and capital ratios.

“I am particularly pleased at the way in which we have achieved our results. We remain committed to being an organisation that cares about our customers, continually offering good value products to our members, backed up by outstanding personal service.”

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