Yorkshire Building Society increased its core operating profit by 27% to £163 million in 2011.

The UK’s second-largest building society also increased its lending by 46%, while its mortgage balances rose by 14% to £26.7 billion.

The group average indexed loan to value was 54% and asset quality improved with the level of loans in arrears by 3+ months (including possessions) reduced to 1.78%, below the CML industry average of 2.10%.

Chris Pilling, chief executive of Yorkshire Building Society said: “The society’s focus throughout 2011 has been on providing good