Skipton's profits jump 48%
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Skipton Building Society has reported a group pre-tax profit of £21.7m for the first six months of the year, up from £14.7m for the same period in 2009.
The society completed its merger with Chesham Building Society on June 1 and has seen its Tier One capital increase by 34% to 11.4% up from 8.5% in June 2009.
Skipton, which owns mortgage network Pink Home Loans and servicer HML saw a loss of £5.7m in its mortgage and savings division, but this was an improvement on last year’s loss of £9.1m for the six months to 30 June 2009.
Group net interest margin reduced by £12.3m to £26.5m compared to the first six months of 2009, but increased by £12.3m compared to the second six months of 2009.
Its group mortgage assets reduced by £0.6bn since the year end to £10.1bn.
The charge for mortgage losses amounted to £3.2m, compared to £22.1m for the six months ended 30 June 2009, a reduction of £18.9m. This reflects a 12% reduction in arrears and greater macro economic stability.
The Financial Advice division reported a profit of £1.7m compared to a loss of £0.1m for the comparative period and is well placed to comply with the Retail Distribution Review requirements which come into force on 31 December 2011.
Its estate agency division continued to perform strongly, with revenues and profits well up against the first half of 2009. New instructions increased 23% and the level of exchanges rose 13%. Profits for the period amounted to £31.7m, compared to £20.8m for the same period in 2009.
David Cutter, group chief executive of Skipton, says: “A 48% increase in profit and 34% increase in our Tier One capital ratio is a very pleasing performance compared to our June 2009 results. But there is no room for complacency. Uncertainty stemming from fears over the financial stability of certain European nations and the impact of the government’s austerity package has highlighted the need for continued vigilance.
“However, these most recent results once again demonstrate our ability to prosper despite such adverse conditions while, at the same time, remaining true to our ethos of offering consistent good value and service to our members.
“Therefore I remain confident that steps we took in the first six months of this year, coupled with our unique business model, will ensure a sustainable and strong future for our business.”
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