Beverley BS rises above 'difficult year'

The mutual, which has 15,000 customers but only one branch, said it made pre-tax profits of 1m in 2009 compared with 347,000 a year earlier.

That was despite gross mortgage lending falling 50 per cent at 13.3m as the stagnant mortgage market took its toll.

"Despite the difficulties that there were we exited 2009 in reasonably good shape," said chief executive Phil Gray. "We have got back to the way we were at the end of 2007 in terms of profitability and the regular ratios.

"Last year was really one of consolidation and saying times are tough so we need to be sensible about what people are doing and get back to basics."

The Beverley closed its Pocklington branch in 2009. Mr Gray said it was being under-used by customers. As a results, savers' balances fell almost three per cent to 151.3m.

But Mr Gray said the closure meant it was able to increase efficiency, with its management expense ratio dropping to 62p per 100 of assets compared with 68p/100 in 2008.

The mutual launched a deposit facility for local businesses, helping it to grow its liquidity ratio to 27.7 per cent against 26.8 a year earlier.

"We've been able to grow some good-quality, sticky deposits from some loyal businesses," said Mr Gray.

He added the Beverley's liquidity ratio stands at 30 per cent, after a surge of deposits in recent months.

The society also tapped the wholesale funding market twice, raising funds worth a total 1m.