UPDATED: Leeds Building Society '˜well-equipped for strong growth' after record profits

Profit before tax reached £116.6m, up from £108.5m the previous year, while the society also increased total membership to more than 756,000, the highest in its history.

The firm hired an additional 120 personnel during the year, taking their total headcount to more than 1,400 - a figure which has increased 50 per cent in the past five years.

Mr Hill also said that society remained committed to its branch network, with a refurbishment scheme due to conclude this year.

Speaking to The Yorkshire Post Mr Hill said: “We started with this vision back in 2011 to be Britain’s most successful building society. We said that, to do that, we have to think about our purpose.

“We have been in business for more than 140 years and during that time we have been in savings and mortgages.

“We have done a few other bits and pieces along the way but always it comes back to savings and mortgages. So how do we build a business that is as good as can be and is true to our mutual heritage and purpose?

“For the past five years we have been honing that model and I think the results for 2016 reflect how we have built on that principle. We have looked at what matters to our borrowers and savers.

“On mortgages we have looked at underserved markets such as first time buyers, affordable housing, shared ownership - the kind of things the mainstream is less inclined to get involved with. They take some specialisation and some particular capability and we built that over this five year period. And we have found we have really got momentum behind it. If you take the past five yeas, the average growth rate has been 26.5 per cent. It is not a one-off flash in the pan, it has been a really strong consistent story.

On the other side of the balance sheet we have been able to support our savers and we are able to pay materially more than the average in the market. We are paying 1.66 per cent, the market average is 0.97 per cent.

“It is tough in a low interest rate environment but it is about doing the right thing for savers. Those two factors combined is driving the really strong growth in membership.”

The past few weeks have seen announcements of branch closures from many banks and building societies but Mr Hill said that Leeds Building Society was committed to its network, being halfway through a two year refurbishment programme.

“Branches are very important to us and feature heavily in our plans for the future,” he said.

“I think it is different to some areas of the banking sector where the purpose is to enable customers to complete transactions. For us, our branches are there to provide help, support and advice. Transactions have largely migrate to other means.

“Right now our branches are really busy.”

Mr Hill added that he was proud of the fact that the building society had helped more people than ever save and have the home they want.

“During 2016, we consistently provided security and value through attractive products and excellent service to meet the needs of our growing membership.

“As a result, the Society has more savers and borrowers than ever before, achieved record profits and our total assets now exceed £15.9bn.

“We knew coming into 2016 that it would be a challenging year on profit.

“We are reliant on it to provide the capital to support future growth. In the end we are really pleased with the seven per cent uplift.

“We can look forward to 2017 where we are well equipped to grow strongly.”