Yorkshire Building Society, the UK’s second-largest building society, reported record results for 2011 and said membership has grown by more than a quarter.
The Yorkshire’s core operating profit rose by 27 per cent to £163m and the society increased its lending by 46 per cent to £4.1bn in the year to December 31
The lender said the volatile economic and market conditions which continued in 2011, as well as regulatory changes, presented the society with fresh challenges and opportunities.
Chris Pilling, the Yorkshire’s new chief executive said: “It is clear to me that when trust in banks is at an all-time low, the Yorkshire’s success is based on our operating principles as a trusted independent mutual, our financial strength and the commitment, attitude and skills of our people.”
Member savings balances increased by over 20 per cent to £26.0bn while mortgage balances increased by 14 per cent to £26.7bn.
The society’s asset quality improved over the year with the level of loans in arrears by three months or more falling to 1.78 per cent from 2.10 per cent and well below the sector average of 2.10 per cent.
During the year the Yorkshire bought the savings and mortgage business of Egg Banking, it merged with N&P and it completed the integration of Chelsea Building Society into the Yorkshire.
Over the year the number of members rose by 27 per cent to over 3.3m (2.6m in 2010)
Virtually all loans (97 per cent) were funded by customer deposits, up from 94 per cent in 2010.
Earlier this month the Yorkshire announced plans to open 12 new branches over the next two years.