Disaffected bank customers are voting with their feet and switching to mutual societies, says Yorkshire Building Society boss
18:32 26 July 2012
Bank customers are voting with their feet and turning to mutual societies in the wake of recent scandals – the boss of Yorkshire Building Society said today.
Announcing its interim results, Yorkshire, which last year completed a merger with the Norwich and Peterborough Building Society, said pre-tax profits were £82.8m, up from £73.1m in June 2011, with its total mortgage balances growing to £27.5bn up from £27bn in December and gross mortgage lending up 58pc.
The society would not disclose how much of the profits boost was directly attributable to N&P but it said that the number of applications and enquiries for N&P’s Gold Current Accounts has increased by about 40pc since the recent banking scandals hit the media.
Chris Pilling, chief executive of Yorkshire Building Society, said scandals ranging from the Barclays and the fixing of Libor rates to lax money laundering controls at HSBC were helping to win business from disaffected bank customers.
And he said the strong performance reflected an “ambitious but prudent approach” to the business while Yorkshire also had no direct exposure to Eurozone economies.