Skipton profits hit £90m

Sarah Davidson

July 31, 2014

The building society is already chasing its profit total for the whole of 2013, which stood at £103.6m.

Gross residential mortgage lending amounted to £1.5bn in the first six months of 2014, an increase of 34% from the £1.1bn recorded in the first half of 2013.

On a net basis mortgage balances increased by 11% during the first half of 2014 from £0.5bn in 2013 to £0.6bn.

Overall the mortgages and savings division increased its pre-tax profits by £39.1m from £12.2m to £51.3m.

David Cutter, Skipton Building Society group chief executive, said: “The society has continued to make good progress in growing its customer base, showing above-market growth in both its mortgage and savings balances.

“It has also increased its financial strength with profits and capital further improved, providing current and future members with the reassurance that they are dealing with a solid financial institution with a bright future.

“Significant investment continues to be made in the growth and development of the society, the products and services we provide, the people who make Skipton what it is, and the communities in which we operate.”

In the first six months of 2014 15,997 homeowners were helped purchase or remortgage their properties, while the figure includes 2,247 first-time buyers.

The average loan to value ratio of the group’s residential portfolio remaining flat at 52.9%.

The group’s growth was attributed to an increase in net interest margins from £61.1m in the first six months of 2013 to £106.4 in 2014.

In addition the bank gained £12.5m from disposing of its equity investment holdings in both property website Zoopla and crime analytics software company Wynyard Group.

The group’s total assets have from £14.5bn at the end of 2013 to £15.1bn.

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