Scarborough reveals 20% profit rise

Scarborough has revealed pre-tax profits for 2006 to be up 20% on previous figures.

The mutual reported profits of 6.8m, as well as group total assets up 33%, to a record 2.3bn.

Group mortgage balances for Scarborough were up 4%, to 1.4bn and members savings balances were also up, 8% to 1.3 billion.

The lender attributes the acquiring an offshore retail deposit-taking subsidiary, Scarborough Channel Islands and the launch a sub-prime lending arm, Scarborough Specialist Mortgages as the reasons for the growth.

It says it accelerated the growth of the group by taking on new mortgage administration clients for SMS and completing transactions totalling 2.3bn through mortgage trading subsidiary, North Yorkshire Mortgages.

Scarborough is also launching a dedicated Christmas Saver account giving people a regulated alternative to hamper clubs following the Farepak collapse. It is also opening a flagship branch in Scarborough and planning to relocate to a new state-of-the-art branch in Leeds.

John Carrier, chief executive of Scarborough, says: This has been a year of unprecedented growth and development for Scarborough, thanks to a clear business strategy based on our integrated model of complementary businesses.

We have achieved a successful balance between the focus needed to deliver on our plan, and the ability to seize opportunities that enhance our group business, whilst responding to changing consumer and social trends by bringing new and innovative products to market.

All of this activity has enabled us to fulfil our core purpose of creating profitability to invest in and sustain our business in order to return value to our members through rewarding savings products and value-for-money mortgages.