YBS profit up 27 per cent

The Bradford-based mutual, the UK’s second-biggest building society, said pre-tax profit increased to £73.1 per cent in the six months to the end of June, up from £57.5 per cent, while core operating profit jumped to £90.2m from £53.2m.

Lending volumes doubled, with gross mortgage lending up to £1.5m, which it said resulted in a stable asset position with total assets of £30bn.

Earlier this year, YBS agreed a merger with Norwich and Peterborough Building Society following previous acquisitions of the Chelsea and Barnsley brands.

This week, it announced it is to acquire the £430m mortgage book and £2.5bn savings business of Egg Banking, as well as the Egg brand.

Outgoing chief executive Iain Cornish said: “The strong performance in the first six months of 2011 reflects the increased efficiencies delivered through the merger with Chelsea and our continued commitment to adopting a prudent approach to our business.

“Whilst the economic climate remains challenging we are confident that the Yorkshire is very well placed to continue to grow and prosper.

“The merger and acquisition work we have announced in this period is in line with our overall strategy to take advantage of opportunities as they arise, which we believe are in the long-term interests of our current and future members. These transactions will further increase our ability to offer members financial security and good, long-term value.”

The Society said the process to find a successor to Mr Cornish, who is stepping down this year, was “well under way”.