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Highlights
- Savings and Mortgage Growth: Paid £430.2 million in additional interest to savers; mortgage balances grew to £49.7 billion.
- Financial Performance: Profit before tax stood at £383.7 million; net interest income normalized at £736.5 million.
- Community Initiatives: Supported financial literacy, employment, and advisory services for thousands across the UK.
Yorkshire Building Society (LSE:YBS) has released its 2024 Annual Report, showcasing solid financial performance despite a shifting economic landscape. The report, set to be published on March 6, 2025, highlights the Society’s commitment to members, mortgage growth, digital transformation, and community initiatives.
Strong Savings and Mortgage Growth
Throughout 2024, YBS prioritized favourable savings rates, paying 0.90 percentage points above the market average. This translated into an additional £430.2 million in interest for savers. Savings balances saw a £4.9 billion increase, reaching £52.0 billion, supported by loyalty products and new offerings.
The Society’s mortgage portfolio also expanded, with balances growing from £46.8 billion in 2023 to £49.7 billion in 2024. Net lending doubled year-on-year to £2.9 billion, driven by higher lending levels and improved retention strategies.
Financial Performance and Market Adjustments
YBS reported a profit before tax of £383.7 million, down from £450.3 million in 2023, reflecting market normalization and margin compression. Net interest income settled at £736.5 million, a decline of £49.5 million, as mortgage and savings margins tightened and interest rates fell in the second half of 2024.
Strategic investments in digital transformation and operational growth contributed to higher management expenses of £366.6 million. The introduction of a new Bank of England Levy Framework added £8 million in costs.
Despite these adjustments, the Society maintained strong liquidity and capital positions, with a liquidity coverage ratio of 202.7% and a CET1 capital ratio of 18.1%, both exceeding regulatory requirements.
Commitment to Community and Sustainability
YBS continued its 160-year tradition of community support, delivering impactful initiatives in financial education, employment, and advisory services:
- Partnership with FareShare: Helped 660 individuals build job-ready skills.
- Money Minds Programme: Educated 20,000 people on financial resilience.
- Citizens Advice Collaboration: Provided 5,600 individuals with free financial and legal advice.
- Environmental Efforts: Strengthened emissions reporting and sustainability strategies.
Looking Ahead: 2025 and Beyond
The UK economy is expected to experience modest growth in 2025, with the Bank of England gradually lowering interest rates. YBS anticipates steady expansion in savings and mortgage markets while navigating global uncertainties, including the Ukraine conflict, Middle East tensions, and potential US tariff changes.
