Lost Worlds
Related Articles
The Yorkshire Building Society (YBS) reported a pre-tax statutory profit of £243.4 million (30 June 2021: £147.7 million) in its half year results for 2022.
The firm says it also provided 25,000 new residential mortgages during this period (30 June 2021: 27,000) while its mortgage balances increased to £43.3 billion (31 December 2021: 41.9 billion pounds sterling), the highest in its history.
Savings balances hit a record £37.7bn (31 Dec: 2021: £35.5bn).
Alasdair Lenman, acting chief executive, said: “The Yorkshire Building Society delivered a balanced and positive set of results in the first half of 2022.
“Our simple and resilient business model has continued to perform well, although the volatility of the external environment remains high, with a significant increase in inflation, rising interest rates and the conflict in Ukraine.
“Our net lending capacity has been offset by growth in our savings portfolio and we have seen further reductions in arrears rates on our loans.
“As a result, our key capital and liquidity ratios have remained stable and we are well positioned to manage the broader economic risks from inflation and lower GDP growth that lie ahead.”
YBS warns that while the rising interest rate environment is good news for savers, borrowers will begin to feel the impact of higher mortgage payments as they come to the end of their current agreements. .
Its report adds: “Wider consequences of the cost of living crisis could emerge as savings balances are increasingly used to finance day-to-day life, reducing the ability of customers to repay their debt if they suffer loss of income for any reason.
“Emerging challenges and threats, both economic and operational in nature, will continue to be monitored to ensure the Yorkshire Building Society responds appropriately.”
