Yorkshire Building Society reported a drop in profits for 2024 as falling interest rates pressured mortgage and savings margins. Core operating profit declined from £449.9m to £345.7m, while pre-tax profit fell from £450.3m to £383.7m. Net interest income dropped by nearly £50m year-on-year to £736.5m, with net interest margin shrinking from 1.31% to 1.16%.
Despite the profit decline, the mutual expanded its mortgage book to £49.7bn, driven by increased gross lending and borrower retention. Mortgage arrears over three months, including possessions, stood at 0.5%, below the industry average of 0.97%.
Executives anticipate modest UK economic growth in the near term but highlighted uncertainty in global markets due to geopolitical conflicts and potential US trade tariffs.
