Skipton Building Society has posted a pre-tax profit of £104.7m, increasing its membership to 917,900 in the process.
In its interim results covering the six month period from January 1 to June 30, the UK’s fourth largest building society posted an underlying group profit before tax of £94.9m, and a Common Equity Tier 1 ratio of 33.2 per cent.
Savings balances increased by £0.5bn and mortgage balances increased by £0.5bn. More than 110,000 customers held a cash lifetime ISA (LISA) with Skipton Building Society at 30 June 2018, and LISA customers benefitted from £99.0m of bonuses paid by the Government during the period. The Society remains the only financial services provider to offer a cash LISA.
SBS also further broadened its wholesale funding base, issuing regulated public covered bonds, raising £400m over a five year term.
David Cutter, Skipton’s Group Chief Executive, said: “The first half of 2018 has seen another strong performance for Skipton, as we continue to support our members in planning for their lives ahead.
“In the first half of this year, we have seen continued growth in our membership. This includes us having over 110,000 LISA customers as at 30 June 2018 as Skipton remains the only organisation to support younger savers by providing a cash LISA account. Total cash LISA balances amounted to £508.3m at 30 June 2018 and £99.0m in government bonuses were paid to LISA customers during the period, a fantastic benefit for this new cohort of younger savers.
“In doing so we are continuing to deliver on our 165-year-old founding mutual purpose of helping people save and buy their own homes.
“The Society’s performance in the first half of 2018 is pleasing, with sustainable growth in mortgage and savings balances, strong liquidity, and a growth in our net interest margin. We have continued to invest in our member offering, and Skipton is now one of the few financial services providers on the UK high street to offer full mortgage and financial advice video appointments. #
“Called ‘Skipton Link’, this popular mortgages, investments and pensions service allows our members to link up via video from home or branch with any of our UK branches, Skipton’s head office or home-based financial advisers.
“As a mutual, we will continue re-investing in our business for the benefit of our members.”