View more on these topics

Skipton’s profits surge 253% year-on-year

Skipton Building Society (480)

Skipton Building Society has reported a £22.3m pre-tax profit for the six months ending June 30, 2012, an increase of 253 per cent on the £6.3m profit it made in the first six months of last year.

The profit increase resulted largely from a £12m lift in the performance of its mortgage and savings division, which achieved a pre-tax profit of £3.9m compared to a loss of £8.1m for the first half of 2011.

Its mortgage and savings division also saw a £9.5m reduction in impairment charges on loans to £7.7m for the first six months of 2012, compared with £17.2m in the same period of 2011.

Skipton’s estate agency profits rose by £4m, driven by the Connells group, which recorded a pre-tax profit of £18.9m for the first six months of the year, compared to £14.9m for the first six months of last year.

The building society’s mortgage servicing business, HML, made a pre-tax profit of £0.1m following a loss of £3.2m for the first six months of 2011.

Skipton’s core tier one capital ratio increased from 10.53 per cent in June 2011 to 10.88 per cent in June 2012.

At June 30, 2012, 81.2 per cent of Skipton’s total funding came from retail savings, compared to 77.9 per cent at the end of June 2011.

Its arrears have fallen and the proportion of loans where the arrears balance was greater than 2.5 per cent of the outstanding balance was 1.37 per cent at June 30, 2012, compared to 1.48 per cent a year earlier. The Council of Mortgage Lenders’ industry average figure currently stands at 1.4 per cent.

Skipton group chief executive David Cutter says: “I am pleased to announce the increase in our profitability and overall performance over the past six months which is the result of our ongoing clear strategy of prudent growth, balanced with cautious management of our business and a steadfast focus on the needs of our members.

“We are not complacent as we enter the second half of 2012, given the continued economic challenges facing the Eurozone in particular and the UK in general.

“However, we remain confident that the strength of our diversified Skipton Group, coupled with our plans for managing future challenges which might emerge, will continue to stand us in good stead as we provide a reliable haven for meeting our members’ financial needs.”

Recommended

ECB holds interest rates at 0.75%

The European Central Bank has held key interest rates in the first meeting after its president Mario Draghi said the bank would “do whatever it takes” to support the euro. In its monthly monetary policy meeting, the central bank decided to keep its main interest rate at 0.75 per cent. Speaking at a press conference […]

1

Merchant House plans corporate IFA offering and private equity fund

Turnaround specialist Beia has provided a £400,000 interest-free loan to Merchant House Group as it waits for the FSA to approve a share deal to provide extra funding to the group. Merchant, which includes structured product arm Merchant Capital and IFA arm Merchant House Financial Services, has had its shares suspended on Aim since mid-April […]

Sandringham appoints operations director

SimplyBiz chairman Ken Davy’s restricted national advice business Sandringham Financial Partners has appointed Intrinsic product and services director John Hayden as operations director. Hayden (pictured) will report to managing director Steve Braidford. In May, Money Marketing revealed that Davy was to launch a restricted national business. Braidford says: “We are offering an opportunity to shape […]

The investment clock

While Trump blazes blond in the political foreground, it’s easy to overlook the economic background to the new political dimension of 2017. Political risk will be a feature of the year: the unpredictable and untested Trump administration has already created uncertainty, which is unlikely to diminish, especially if protectionist rhetoric starts to outweigh promises of […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com