Yorkshire cashing in on public’s lack of trust in high street banks

A LACK of trust in the high street banks has continued to boost business at Yorkshire Building Society, the mutual’s chief executive yesterday claimed.

Chris Pilling highlighted the society’s financial strength by revealing that its core tier one capital ratio rose to 12.6 per cent in 2011 from 12.4 per cent in the previous 12 months.

He reassured members that the society has no exposure to sovereign debt in the eurozone, with its only gilt exposure being to the UK government.

His comments came as Yorkshire posted a 27 per cent rise in its core operating profits for 2011 to £163.2 million.

Members’ savings increased by more than 20 per cent to £26 billion, while its mortgage book grew by 14 per cent to £26.7bn following the takeover of the Norwich & Peterborough Building Society and the acquisition of Egg’s mortgage and savings businesses from Citigroup. Following the mergers, the society’s membership increased by 27 per cent to 3.3 million.

Pilling said: “It is clear to me that, when trust in banks is at an all-time low, the Yorkshire’s success is based on our operating principles as a trusted independent mutual, our financial strength and the commitment, attitude and skills of our people.

“I am extremely pleased to report very strong financial results despite the continuing challenges presented by the economic and market conditions.”

Yorkshire has 224 branches throughout the UK, including 14 in Scotland, along with a network of 94 agencies, such as estate agents, that offer its products and services, including six north of the Border.