Profits have fallen at Yorkshire Building Society as mortgage and savings margins were squeezed by falling interest rates.
Full year 2024 results for the society show core operating profit fell from £449.9m to £345.7m as pre-tax profits dropped from £450.3m to £383.7m. That came after a near £50m fall in new interest income year-on-year to £736.5m as net interest margin fell to 1.16% from 1.31%.
The mutual grew its mortgage book to £49.7bn thanks to higher levels of gross lending and more borrowers remaining. Cases of mortgage arrears of more than three months, including possessions, was 0.5% compared with the industry average of 0.97%
Bosses said there was a broad consensus that the º£½ÇÊÓƵ economic environment would be "relatively benign" in the near-term, with modest levels of growth anticipated. But the global outlook was said to be more uncertain thanks to ongoing conflicts in Ukraine and the Middle East and the potential impact of US tariffs on international trade.
Susan Allen, chief executive of Yorkshire Building Society, said: "Yorkshire Building Society has delivered a solid performance for the year ending December 2024, successfully and sustainably growing our mortgage and savings balances in pursuit of our purpose of providing 'real help with real life'.
"In 2024 we celebrated our 160th year and we are proud of the help that we have been able to provide our members and customers over this period. Whilst there are signs in the broader economy that some of the cost-of-living challenges may be beginning to ease, we recognise that many people continue to face financial challenges. This year we have launched targeted, innovative products to help address some of these challenges and continue to provide our members with savings rates that were consistently above the market average.
"We have further improved our customer advocacy and are proud of our mutual status. These results strengthen our financial position and place us well in the continuing pursuit of our purpose."
