THE SKIPTON Building Society recorded soaring profits and an improvement in margins despite the tough low interest environment in 2012, in financial results published yesterday.
Profits jumped from £22.2m in 2011 to £36.4m in 2012, while net interest margins rose from 0.52 per cent to 0.61 per cent.
The group’s net lending to the UK mortgage market rose 4.1 per cent, though overall net lending slipped from £412m in 2011 to £356m in 2012.
Impairment losses boosted profitability, plummeting 59 per cent from £29.5m to £12.1m. The mutual credited increasingly “careful lending and prudent management of arrears cases” with creating the sharp improvement.
“Since the year end we have utilised funding available from the Funding for Lending Scheme, to increase our lending to borrowers,” said chief executive David Cutter.
“Meanwhile, we will remain focused on satisfying the saving and investment needs of our customers.”