Skipton International Parent Posts Strong Results
Skipton Building Society, the owner of Skipton International in Guernsey, has announced a rise in Group operating profit before tax of 94% over the year to 31 December 2010, compared to the previous 12 months.
During the year, the Group completed a business restructuring programme, which resulted in a controlled reduction of the balance sheet, including the sale of the Callcredit Information Group. Operating profit rose from £18 million to £35 million and Core Tier One Capital increased by 18% to 11.1%. The ratio of funding from retail savings balances grew to 82%, up from 79% in the previous year and total mortgage lending rose 18% to £481 million. 97% of Group mortgage lending is now funded from members' deposits.
David Cutter, Skipton Group Chief Executive, said: "Despite continued buffets from external market developments such as the impact of government austerity measures on our still-fragile economy, the Society has continued to underline its financial strength through prudent, cautious management coupled with a strategy to now grow the business whilst maintaining appropriate levels of capital and liquidity.
"We've held our margin steady at a low enough rate to give great value to members whilst being high enough to operate the business in a prudent manner.
"Skipton remains a successful mutual building society with tremendous future opportunities. It is thanks to the tireless commitment and team effort of our people that we remain optimistic about the future and our ability to overcome any further challenges which arise."
He added: "It is widely recognised that mutuals like ourselves face a rare opportunity to meet consumers' desire for greater competition, diversity and alternative solutions in financial services, in this immediate post-credit crunch environment."
Jim Coupe, Deputy Managing Director, Skipton International adds, "Strength and stability lie at the heart of our offering to borrowers and savers in Guernsey and Jersey. Our business across the Channel Islands continues to move from strength to strength and we became the number one lender in Guernsey in 2010, whilst lending in Jersey grew by 95%. We remain optimistic for the future, backed by our parent, the fourth largest building society in the UK."