Skipton International parent posts strong results

Thursday 05 August 2010

Skipton Building Society, the owner of Skipton International in Guernsey, has announced a rise in Group profit before tax of 48%, compared to the six month period ending 30 June 2009.

The Society’s clear plan for steering the business through the aftershocks of the historic economic downturn has boosted performance and remains on track. Group Profit before tax amounted to £21.7m, a 48% increase compared to £14.7m for the six months ended 30 June 2009. Tier One capital increased by 34% to 11.4% (30 June 2009: 8.5%).

During the reporting period, the Society also completed its merger with Chesham Building Society, further increasing Skipton’s capital strength, boosting the member base by 21,000 and adding three new branches to the UK network.

Group Chief Executive David Cutter said: “A 48% increase in profit and 34% increase in our Tier One capital ratio is a very pleasing performance compared to our June 2009 results. But there is no room for complacency. Uncertainty stemming from fears over the financial stability of certain European nations and the impact of the Government’s austerity package has highlighted the need for continued vigilance.

“However, these most recent results once again demonstrate our ability to prosper despite such adverse conditions while, at the same time, remaining true to our ethos of offering consistent good value and service to our members.

“Therefore I remain confident that steps we took in the first six months of this year, coupled with our unique business model, will ensure a sustainable and strong future for our business.”

Alan Bougourd, Managing Director, Skipton International adds, “Strength and stability are a key part of our offering to customers in Guernsey. Our business continues to move from strength to strength, with mortgage lending growing strongly in Jersey and Guernsey and savers obviously finding our products attractive. We remain optimistic for the future, backed by our parent, the fourth largest building society in the UK.”