Leeds Building Society has reported a 37% increase in total lending to a record £2.6bn for its half year (H1 2023: £1.9bn).
The mutual recorded an underlying profit of £86.4m, a significant increase compared to the second half of last year (H2 2023: £65.3m).
Leeds BS saw a slight increase in the number of first-time buyers being helped onto the housing ladder to 7,800 (H1 2023: 7,700) while welcoming almost 17,500 new borrowers overall (H1 2023: 15,800).
Commenting on the latest figures Leeds Building Society chief executive officer Richard Fearon argued that while the last year had been a better year for the sector in general, the record achievement this year from Leeds BS spoke for itself. “I’m delighted with our record-breaking start to 2024 and our ability to support borrowers and savers so effectively over the past six months.
“As a mutual we are only ever as strong as the relationship we hold with our members, and we have achieved some significant milestones that reflect their enduring loyalty.
“I’m confident we’re in a great position to invest in the future given our record growth in lending, savings balances and overall membership.
Fearon went on to explain the decision to increase the company’s branch network – notably the opening of a branch in Solihull.
“We pride ourselves on having a nationwide presence and we identified Solihull as an area where we under-represented. We are known for swimming against the tide; while other lenders are closing branches we are opening them. This is because we are aware of unsupported customers who want branch access.”
On the market generally Fearon said he felt optimistic about the year ahead. “I think there is more confidence generally, helped by the fact that there is greater certainty with a new government in place. Also, inflation subsiding helps to build confidence in the market.”
He added: “It is a very competitive market and we will continue to see more rate cuts – in fact we will be announcing further rate cuts next week. It is also worth remembering that it is almost two years after the ‘fiscal event’ and there will be quite a few people who will see their mortgage deal mature who will be able to make a good saving when they secure a lower rate in this market.”
