Yorkshire Building Society (YBS) has reported a pre-tax profit of £383.7 million for 2024, a decrease from £450.3 million in 2023, attributed to a lower interest rate environment.

Despite this, the mutual experienced significant growth in both savings and mortgage balances.

In 2024, YBS opened 537,000 new savings accounts, bringing total savings balances to £52.0 billion, a 10.6% increase from £47.1 billion in 2023. The society offered an average savings rate of 4.21%, which is 0.90 percentage points above the market average, resulting in an additional £430.2 million in interest paid to members.

On the lending front, YBS provided 41,000 new residential mortgages, contributing to a 6.2% rise in mortgage balances to £49.7 billion from £46.8 billion the previous year. Gross mortgage lending reached £9.7 billion, with net lending at £2.9 billion. Notably, one in three of these mortgages was extended to first-time buyers.

Chief executive Susan Allen (pictured) commented on the performance, stating: “Yorkshire Building Society’s solid performance has continued in our 160th year. We’re a proud mutual, with no external shareholders, so our profits are returned to our members through higher savings rates, and reinvested in our products, services, and communities.”

In response to challenges faced by potential homeowners, YBS introduced the £5k Deposit Mortgage in March 2024, allowing borrowers to purchase properties valued up to £500,000 with a £5,000 deposit. Additionally, the society launched the £50 Regular Saver account, aiding 17,600 individuals in initiating or maintaining a savings habit.

Allen emphasised the society’s commitment to innovation and member support, noting: “We will continue to provide value to our members and champion their long-term interests, exploring opportunities to overcome the challenges they face and using our voice to help shape a better future for them.”