Despite experiencing one of its “most challenging years” to date, Skipton Building Society has reported good profits.
For the year to 31 December 2020, the group reported underlying profits before tax of £124 million – down from £155.2 million in 2019.
Total profit before tax (PBT) stood at £118.8 million – down from £153.2 million. There was also a rises in mortgage and savings balances by 8.6% and 7.7% respectively.
An increase in the group’s loan impairment charges to £25.7 million from £500,000 amid an expected worsening of the economic outlook, which impacted profits in the short term.
“Without a doubt 2020 was one of the most challenging years we have ever faced,” said David Cutter, Skipton Group Chief Executive.
“Our fundamental priority remains of looking after our members and people, ensuring their safety and well-being, and being there for them when they need us, wherever they need us.
“Whilst we still reported good group profits for the year, our financial results reflect a challenging period.
“Our Mortgages and Savings division has been heavily impacted by increased impairment charges and our Estate Agency division, Connells, saw all of its UK branches forced to close for two months.
“However, the resilience of Skipton’s business model has allowed the society to maintain strong capital ratios throughout and we look to the future with confidence.”