Leek United profits and mortgage lending down

Michael Lloyd

March 20, 2019

Leek United’s mortgage lending and group profits before tax both decreased last year.

Its group profit before tax and hedging was down from £3.9m in 2017 to £3.4m and mortgage lending down from £184m in 2017 to £158m last year.

However its mortgage assets rose from £796m in 2017 to £825m

Chief executive Andrew Healy (pictured), said the society’s results for the year ended 31 December 2018 demonstrated that Leek United “remains in a highly robust position within an increasingly challenging and uncertain market environment”.

He said: “The society remains committed to ensuring that profits are maintained at a suitable level to protect capital, but are not maximised at the expense of member value.

“In line with the society’s strategic plan, mortgage lending was slightly reduced from 2017, but still represents a solid performance in an extremely competitive market.

“Notwithstanding the increasingly challenging market conditions in which we operate, I am pleased to say that Leek United remains in a highly robust position.

“The months ahead are likely to bring even greater challenges, with increased economic and political uncertainty linked to the outcome of the UK’s withdrawal from the European Union.

“However, as a mutual building society, our core priorities remain unchanged: to look after our members’ money, enable home ownership and help people plan for a secure financial future.”

Group reserves were up slightly from £63.2m in 2017 to £65.7m in 2018 and group assets also rose to £1,071m last year from £1,039m in 2017.

Healy said that Leek United had generated sustainable levels of profit and maintained a strong capital and liquidity position, whilst growing its mortgage book at a controlled rate.

During 2018 Leek United launched 95% LTV and Help to Buy products.

Leek United has also continued to give back to the communities it serves through a wide range of sponsorship and community-centred activities, raising many thousands of pounds for charitable causes.

The society made one of its biggest ever single donations – £39,939 – to the County Air Ambulance Trust in May 2018, and was named as a Donna Louise Hero after raising more than £10,000 for respite and end-of-life care for children and young adults with life-limiting conditions.

Healy added: “Our central aim is to continue to provide all that customers rightly expect from a mutual regional building society: competitive, value for money products, underpinned by the highest possible standards of customer service.

“We look forward to serving the interests of our customers, members and local communities throughout 2019 and beyond.”

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