Branch network is 'really important part of our proposition', says Yorkshire Building Society CEO

In a statement, the mutual said the rising interest rate environment had served to “elevate” levels of profitability across the industry over the past two years.

It added: “This dynamic has been absent from the first six months of 2024 and, as Bank Rate appears to have reached its peak, income performance and profitability have stepped down accordingly to more normalised levels.”

Statutory profit before tax for the half year was £158.1m, compared with £180.6m in the same period the year before. Savings balances increased to £50.3bn, from £47.7bn in the comparative period.

Ms Allen added: "The numbers we have produced today are absolutely in line with our operating plans...in fact they are slightly ahead. Our Q2 (second quarter) was stronger than Q1 (the first quarter) and we expect that to continue. We are well-positioned for the prospect of reducing interest rates. We have taken action, as you would expect a prudent organisation to do, to manage that. We have very strong capital and very strong liquidity. We’re well positioned for the future but we are also well positioned to invest for our members.”

She highlighted the important work carried out by the mutual’s 227 branches and agencies, including 46 in Yorkshire.

She added: “We've got around 2,700 people based in Yorkshire, it’s a really important area for us. Our branches are very well used and so too is our digital offering; it’s digital and branch, it’s not one or the other.”

She said one message that came across “loud and clear” at the mutual’s AGM was how important the branch network and Bradford-based contact centre was for members.

"We are very committed to face to face,’’ she added. “We support people at really important points in their lives..sometimes you want to see someone face to face. I believe that’s a really important part of our proposition. As long as our members value branches we will absolutely stay in our branches.”

In a statement, to accompany the results Ms Allen said Yorkshire Building Society had continued to offer above-market average savings rates, launched new, innovative products to help first-time buyers and delivered a solid financial performance.

She added: “Providing support to our borrowers is important to us and we know one of the most significant challenges faced by first-time buyers is saving for their deposit.

“Our £5,000 Deposit Mortgage makes buying a home much more achievable for a greater number of people and the stories I have heard about its impact have been heartwarming. Simply put, it has been life-changing for those people who thought they would never own their own home and who are now getting keys and planning their future as home-owners.

“While we continue to seek to support prospective borrowers, we are also mindful of the challenges faced by our existing mortgage holders. While some aspects of the cost-of-living pressures have eased, household finances remain strained for many and the cost of borrowing is higher than a few years ago.

“Our teams have worked hard to understand and respond to individual circumstances and help customers navigate the difficulties they may face.”