Skipton half-year profit nudges up to £76.8m


Skipton Building Society’s total group profit before tax for H1 2016 was £76.8m, up slightly from £72.1m in the same period of 2015.

However, the result includes a contingent consideration of £9.6m from Computershare, which bought Homeloan Management from Skipton in 2014.

Skipton’s mortgages and savings arm recorded a profit before tax of £46.6m at the half-year, down slightly from £49.1m in the same period of 2015.

This represents 61 per cent of the group pre-tax profits so far this year.

Gross mortgage lending in the first six months of 2016 was £1.9bn, the same as H1 2015.

The lender’s rate of residential mortgages in arrears by three months or more has fallen to 0.81 per cent, compared to 1 per cent in H1 2015.

The Council of Mortgage Lenders says the industry average is 1.04 per cent.

The firm’s average LTV was 69 per cent in 2016 so far.

The lender got 95 per cent of its business from brokers in the first half of the year.

Skipton group chief executive David Cutter says: “With underlying group PBT of £72.1m, we’ve secured healthy profits, ensuring we continue to maintain a sustainable business – and one that remains resilient and robust, with strong capital and leverage ratios.”

The lender also set the date of 1 August 2016 to merge its financial advice business, Skipton Financial Services, into the rest of the building society.

The move will see Skipton advisers offer face-to-face financial advice in the lender’s high street branches.

The firm’s estate agent arm, Connells, logged profits before tax of £31.3m for H1 2016, up half-on-half from £27.3m in the same period of 2015.