Skipton Building Society is the latest mutual to report growing profits as more house buyers applied for its mortgages.
The UK's fourth largest building society reported underlying pre-tax profits of £148.5m in the six months to the end of June, up from £122m in the same period of 2021. Its mortgages and savings division generated pre-tax profit of £128.3m - a £41.4m increase on last year, thanks to increases in net interest income and improved interest margins.
Skipton said May was its highest ever month for mortgage applications, totalling £1.1bn, and over the six month period its entire mortgage portfolio grew 3.1% to £24bn. Meanwhile, savings balances grew £1.2bn to £21bn overall.
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The group's estate agency division, Connells, contributed pre-tax profits of £28.9m, down from £80.2m in 2021, though the society said last year's results benefited from "exceptional" demand in the housing market fuelled by stamp duty relief and changing housing needs spurred by the pandemic. And its offshore banking arm - Skipton International Limited - increased pre-tax profits to £18m, up from £11.4m, and mortgages and savings balances of £1.8bn and £2bn respectively.
Ian Cornelius, Skipton's interim group chief executive, said: "I'm acutely conscious our strong performance comes at a time when household finances are under significant strain. The current economic environment for our members and colleagues is understandably causing concern. Our role at Skipton is to help people navigate these challenging times, and it's very pleasing to see our competitive offering and first-rate service have enabled us in recent months to help more people than ever before.
"As a mutual, we're accountable to our members, not shareholders. Our priority will always be the long-term sustainability of our business, not short-term profit maximisation. So it is a relatively straightforward decision that we take to reinvest profits into the business for the benefit of everyone - our customers, our colleagues and our communities.
"We seek to invest purposefully, from strengthening our IT, digital and data platforms, through to reimagining how we attract and retain talent, to ensure we are fit for the future. And that goes for our green ambitions too, with increased investment to deliver our transition to net zero and support our customers to live in greener and more efficient homes.
"These results for the first half of 2022, including the excellent growth achieved in both mortgages and savings, are the result of the great work by colleagues across the society and their unwavering focus on helping our members at every life stage by offering great value, great service and a strong proposition that meets their needs.
"Public and personal finances have rarely been under such pressure as they are today. Whilst faced with significant uncertainties, Skipton is in a robust position to meet the challenges ahead. The trust our customers and colleagues place in us to do the right thing by them will never be taken for granted. We will continue to do everything we can to support them and their families in these extraordinary times."
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