Skipton Building Society lent £1.5bn to mortgage customers in 2012, an 11 per cent fall on the £1.7bn lent the year before.
Net lending lending fell 13.6 per cent from £412m in 2011 to £356m in 2012.
The building society says 16 per cent of total lending was to first-time buyers in 2012, while buy-to-let business accounted for 12.9 per cent of total lending.
Around 1.3 per cent of the society’s loan book was in arrears of more than 2.5 per cent of the total outstanding balance at the end of 2012, down from 1.45 per cent at the end of 2011. The Council of Mortgage Lenders average is 1.4 per cent.
In 2012, the group recorded a pre-tax profit of £36.4m, up 63.9 per cent on the £22.2m reported in 2011. Group income increased 9.1 per cent from £450.5m in 2011 to £491.5m in 2012.
Skipton says 83 per cent of its total funding came from retail savings in 2012, up from 80.2 per cent in 2011.
The group’s third party mortgage servicer, HML, reported a pre-tax profit of £0.8m in 2012, after suffering a £3.1m loss in 2011.
Its estate agency division reported a profit of £36.2m, up from £35.8m in 2011.
Group chief executive David Cutter says: “We are not complacent and keep a watchful eye on future external shocks which could impact the society.
“However, against this backdrop, we are confident of achieving further improvement during 2013 and beyond as the strength of our mortgages and savings division continues to gain momentum and is complemented by the continuing success of our estate agency business.”
The society last week published a condensed version of its 2012 results with the full year-end results being published in mid-March.