Yorkshire earnings dip as it kicks off £250m investment splurge

 
Tim Wallace
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THE YORKSHIRE Building Society has embarked on a £250m programme to integrate its newly-merged lenders and revamp branches, the mutual said yesterday.

It recorded a pre-tax profit of £80.1m in the second quarter, down 2.3 per cent from the £82.8m in the same period of 2012.

Income rose 4.5 per cent on the year to £227.6m, but costs also increased with the investment plan.

In recent years the Yorkshire has merged with the Chelsea, Barnsley and Norwich & Peterborough building societies.

“We have grown very fast and need to consolidate that position – we will invest in systems and processes so we have consistent platforms and ways of working across the group,” chief executive Chris Pilling told City A.M.

He is also spending money on opening several more branches this year, and refurbishing the vast majority of the group’s sites.

The mutual also expects to increase lending over the year, and has drawn down £450m from the Bank of England’s funding for lending scheme to support that.