Leeds’ pre-tax profit up 5% in H1 results

Peter Hill Leeds 2016

Leeds Building Society increased its pre-tax profit by 5 per cent in the first half to £58m.

The lender’s new residential lending rose 33 per cent to £1.93bn in H1 2016 compared to the same period last year.

The firm’s net residential lending at the end of the half year was £919m, up from £668m in the same period last year.

Leeds chief executive Peter Hill says: “We are delighted with the results. To be in position where, on the back of five years of pretty strong growth, to have new lending increase by 33 per cent, is a great story from our point of view. We’ve seen profits up by five per cent and our margin has come down a bit. We’ve got momentum and we expect to carry that into the second half of the year.”

Hill says the firm’s H1 growth was due to its blend of business.

He says: “This has been part of our long-term strategy. Our model is to blend mainstream lending with a portfolio of non-mainstream niches that gives us a proposition that stands out in the market.

“The things we’re famous for, like shared ownership, help us to keep momentum going. But the things that we do, like participation in the help to buy scheme, the new proposition that we launched last year, our part-and-part interest-only proposition, these are the kind of things that, I think, for our size of lender, give us the ability to grow strongly in a competitive market.”

The lender distributes 90 per cent of its business through intermediaries.