A 40% rise in mortgage lending & record savings balances 21 / 03 / 2011
A 40% increase in mortgage lending and record
savings balances are the highlights of Leek United Building Society's financial
results for the year ended 31st December 2010.
In 2010, mortgage lending rose to £84m,
compared with £60m during the previous 12 months.
At the same time, strong demand for the
Society's savings products brought a £65m increase in its savings balances,
while group assets rose almost 4% to £764m.
Chief
Executive Kevin Wilson said that the figures served to further strengthen Leek
United's position as "a strong, independent organisation with a proven,
sustainable business model".
"Our ability to increase mortgage lending
demonstrates a robust financial position and an ongoing commitment to provide
funding for prospective purchasers," said Mr Wilson.
"It is also
particularly pleasing to see strong demand for Leek United's savings products
from existing and new members, during what continues to be a very low interest
rate environment.
"We continue
to trade in an extremely competitive business environment, compounded by a
deluge of new financial regulations. It is against this backdrop that I am
pleased to report a strong financial performance in 2010."
Highlights of Leek United's results include:
- Mortgage lending £84m (2009: £60m)
- Group assets: £764m (2009: £735m)
- Group profit before tax and FSCS (Financial Services Compensation Scheme) levy: £3.87m (2009: £4.2m)
- Group profit after tax: £2.53m (2009: £2.75m)
- Group reserves: £50.69m (2009: £47.37m)
- Management expenses ratio 0.79% (2009: 0.80%)
All other key
financial ratios, including liquidity, gross capital and free capital,
increased during the year to complete a robust financial performance.
"A small
reduction in profit compared with 2009 is due to the cost of opening two new
agencies in Ashbourne and Wirksworth, and our policy of offering competitive,
sustainable rates of interest to our members," said Mr Wilson.
"We will
continue to offer competitive rates of interest to our members, which refrain
from headline short-term introductory rates.
Consistency and fairness, backed by total security for our members'
hard-earned savings, will always be our paramount objective."
"2011 looks
set to provide a very challenging environment.
The full impact of Government spending cuts will bring new pressures for
consumers and businesses. Increases in taxation, a fragile housing market and
rising unemployment will define the economic environment for the foreseeable
future."
"Financial
markets remain fragile and susceptible to any deterioration in the global
economy. A slow recovery is, therefore,
inevitable for the UK. All of these
issues are likely to have a degree of influence on our financial performance
over the coming year."
"We will,
nevertheless, continue to build on our strong financial position and
demonstrate the true values of a local, independent building society that
continues to go from strength to strength."
