Leeds Building Society achieves record-breaking lending performance in first half of year

The UK’s fifth largest building society has also established a “significant voluntary financial support scheme” for customers affected by the collapse of Philips Trust Corporation.

Over the half year, the mutual reeled in a 37 per cent increase in total lending to a record £2.6bn. It said it was continuing to improve its digital services to customers as well as taking the decision to open its 51st high street branch later this year, in Solihull, in the West Midlands.

Underlying profit was £86.4m, compared with £116.2m in the same period year. However, this is a significant increase compared to the second half of last year, when it recorded underlying profit of £65.3m.

Richard Fearon, Leeds Building Society Chief Executive Officer, said: “I’m delighted with our record-breaking start to 2024 and our ability to support borrowers and savers so effectively over the past six months.

“We have continued to put homeownership within reach of more people, generation after generation, by helping 7,800 new first-time buyers take their first steps onto the property ladder whilst also supporting existing members and investing in the future of our Society.

“As a mutual we are only ever as strong as the relationship we hold with our members, and we have achieved some significant milestones that reflect their enduring loyalty.

“I’m confident we’re in a great position to invest in the future given our record growth in lending, savings balances and overall membership.

“I am delighted that we’ll be opening a new high street branch in Solihull in the coming months to expand our national branch network and allow us to reach more people. This complements the great strides we have made in improving our digital offering over recent years.

“We are on the verge of entering our 150th year as a building society. We are well placed over the rest of 2024 and into our next 150 years and beyond to continue making homeownership a reality for more people and rewarding savers for the trust they put in us.”

Leeds is one of four building societies which have pledged to provide major voluntary financial support to victims of the Philips Trust, a company which collapsed in 2022 while holding £138m of 2,300 building society customers’ assets including properties in trust and £44m worth of invested savings.

The societies will pay 100 per cent of affected customers savings investments as well as up to £2,400 each towards the costs of getting property titles back. The latter figure is what had been charged by administrator Kroll to make the changes to get properties back.

Mr Fearon confirmed that provisions had been made for £12.5m for voluntary support, administration and legal costs in connection with this matter. Fewer than 200 Leeds Building Society members are believed to be affected. Mr Fearon said he was proud that the society was able to provide this support and the response from members had been positive.