Leeds Building Society declares ’strong’ results

Leeds Building Society yesterday posted its 2008 results, with profits remaining strong despite the global financial downturn.

Assets of the UK’s seventh largest building society grew by over £900 million to £10.1 billion.

End of year operating profit was £68.6 million, compared to £69.4 million in 2007.

Savings balance increased by more than £500 million to a record £6.6 billion.

Quality of lending remained ‘good’, the building society said, with average loan-to-value of just 52%.

On residential mortgages, the average loan-to-value is 49%, even after the fall in house prices.

Capital reserves increased to a record £526 million, compared to £511 million in 2007.

Ian Ward, chief executive, said: “Leeds Building Society delivered another set of good financial results in the context of a market that has been characterised by uncertainty and declining confidence.

“We attracted 44,000 new savings’ members in 2008, which was even higher than our 2007 total.

“Our successful, sustainable business model combined with our prudent approach to lending, keen cost control, very strong levels of capital and high levels of liquidity means that we are in a very good position to deal with the challenging economic outlook for 2009 and beyond.”

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