Yorkshire Building Society Reaffirms Commitment to Mutuality, Returns £68 Million to Members

Strategic Insights -

The Yorkshire Building Society, the fourth largest in the sector, has reaffirmed its commitment to mutuality by returning £68 million to its one million members through lower mortgage rates and higher savings rates. This move comes as the building society reports a 28% increase in pre-tax profits to £55.3 million, a 45.7% jump in net lending to £909 million, and a 20% increase in the number of saving members. The society's chairman, Derek Roberts, has stated that the results reflect the excellent value members receive, while chief executive David Anderson has dismissed suggestions that Yorkshire is under threat of conversion.

Key Takeaways:

  • The Yorkshire Building Society has returned £68 million to its one million members through lower mortgage rates and higher savings rates.
  • The building society's pre-tax profits rose 28% to £55.3 million in the latest period.
  • Net lending jumped 45.7% to £909 million, and the number of saving members increased more than 20%.
  • The society's standard variable mortgage rate is 8.25%, compared to 8.7% at the Halifax.
  • Yorkshire pays a rate of 6.8% on deposits of more than £10,000 on its instant access account.
  • The society is to reduce its minimum opening balance from £2,000 to £1,000 by July for savings accounts at branches and from £3,000 to £2,000 for postal accounts.
  • Yorkshire's chairman, Derek Roberts, stated that the results reflect the excellent value members receive.
  • Chief executive David Anderson dismissed suggestions that Yorkshire is under threat of conversion through a bid from Royal Bank of Scotland.

Statistics:

  • Pre-tax profits: £55.3 million (28% increase)
  • Net lending: £909 million (45.7% jump)
  • Number of saving members: increase of more than 20%
  • Standard variable mortgage rate: 8.25%
  • Deposit rate on instant access account: 6.8%
  • Minimum opening balance for savings accounts at branches: to be reduced from £2,000 to £1,000
  • Minimum opening balance for postal accounts: to be reduced from £3,000 to £2,000

Sources:

  • The Times, 1998 (Copyright (C) 1998)