Skipton Building Society see rise in group pre-tax profit

The mutual said total group profit before tax increased by 15 per cent to £168.9m in 2016, up from £146.9m the previous year.

However, underlying group pre-tax profit decreased by 1.2 per cent to £151.5m, from £153.3m in 2015.

Skipton Building Society, which provides mortgages, savings, investments and pensions advice, said it continued to grow with a 22,316 increase in customers to 860,403.

David Cutter, Skipton’s group chief executive, said: “Looking after people’s savings and enabling home ownership is at the very heart of what the society does as a mutual building society. I firmly believe that our long term focus of being there to help people plan for their life ahead is resonating with our members.

“Being a ‘trusted helper’, coupled with excellent customer service, has led to the Society delivering a strong performance in 2016, achieving a net customer satisfaction rating of 90 per cent, and an employee engagement score of 90 per cent. Group profit after tax increased by 14.5 per cent to £129.8m and, being a mutual, this money is held in reserves and available to be reinvested back into the business, not paid out to shareholders.”

Last year Skipton integrated its financial advice subsidiary Skipton Financial Services (SFS) into the building society.

A move that will make it “more cost effective to meet our customers’ changing needs”, says Mr Cutter.

Skipton also announced that Robert East will become the society’s new chairman, replacing Mike Ellis who will retire from the board of the mutual after this year’s annual general meeting on April 24.

Mr Ellis, who has has chairman for the past six years, said: “It has been a privilege to chair Skipton through a period of significant change that has resulted in a stronger building society focussed on delivering value for its members, as is evident from an enviable net customer satisfaction rating of 90 per cent. The friendliest people in financial services doing their best for customers bring the culture of Skipton to life. And in Robert, I leave Skipton in very capable hands.”

Mr East currently chairs the risk committee.