Skipton Building Society has hailed a strong performance in its interim results, boosted by record mortgage applications.
The society reported pre-tax profits of £160m for the six months ended 30 June 2022, up from £159.2m in the same period of 2021.
The Mortgages and Savings division generated pre-tax profits of £128.3m, an increase of £41.4m compared with the first half of 2021, due principally to increases in net interest income and improved interest margins.
May 2022 was the Society’s highest ever month for mortgage applications, totalling £1.1bn.
The group’s mortgage portfolio grew by 3.1 per cent in the period to reach £24bn.
Savings balances grew by 6 per cent (£1.2bn) in the period to £21bn.
Connells, the group’s estate agency division, reported underlying pre-tax profits of £29m, down from £50m the previous year. The group said the higher profits in 2021 benefitted from exceptional housing market demand, fuelled by stamp duty reliefs and people’s changing housing needs following the pandemic.
Ian Cornelius, Skipton’s interim group chief executive, said: “I’m acutely conscious our strong performance comes at a time when household finances are under significant strain. The current economic environment for our members and colleagues is understandably causing concern. Our role at Skipton is to help people navigate these challenging times, and it’s very pleasing to see our competitive offering and first-rate service have enabled us in recent months to help more people than ever before.
“As a mutual, we’re accountable to our members, not shareholders. Our priority will always be the long-term sustainability of our business, not short-term profit maximisation. So it is a relatively straightforward decision that we take to reinvest profits into the business for the benefit of everyone – our customers, our colleagues and our communities.
“We seek to invest purposefully, from strengthening our IT, digital and data platforms, through to reimagining how we attract and retain talent, to ensure we are fit for the future. And that goes for our green ambitions too, with increased investment to deliver our transition to net zero and support our customers to live in greener and more efficient homes.
“These results for the first half of 2022, including the excellent growth achieved in both mortgages and savings, are the result of the great work by colleagues across the Society and their unwavering focus on helping our members at every life stage by offering great value, great service and a strong proposition that meets their needs.”
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