Leeds hails mutual model as profits and deposits rise

Savings balances and new residential lending are “significantly above market share”, it said.

The mutual attracted 32,800 new members, up from 21,000 in the same period last year, taking total membership to 696,000.

Peter Hill, chief executive, said: “Leeds Building Society continues to grow market share in its core markets of mortgages and savings and has delivered another strong set of results for the first half of 2012.

“As an independent building society, our members are also the owners. This makes for a very different relationship to that which customers have with their banks.

“As a result of the trust we have built up over many years, through excellent service and good value for money products, we now have more members than at any time in our history.

“New loans rose to £769m, which represents double our market share. Over a quarter of these mortgages have helped almost 2,500 first-time-buyers purchase their first home.”

He added: “The average loan-to-value (LTV) on new lending was only 55 per cent. We will continue to be very active in the mortgage market and focus on providing finance that will help borrowers achieve their home-ownership aspirations across a range of product areas.

“Our very strong lending was possible because of our ability to attract retail deposits, which grew by £189m.

“Savers were attracted by the security and value we provide, and this half year performance is significantly above our market share.

“Furthermore, this success means that all of the Society’s residential mortgage balances are funded entirely by retail deposits.”

The society raised £375m in longer term wholesale funding in the first half of 2012.

Arrears fell to 2.76 per cent, from 3.12 per cent the same time last year.

The society recorded a pre-tax profit of £27.1m, up from £26.9m.

Capital and reserves increased by £26m to £598m.