This year, over 97,000 members voted, which is the highest total number of votes in the Society’s history. The Society donated over £11,0001 to this year’s charities - Help for Heroes, World Wildlife Fund, British Heart Foundation, St George’s Crypt and the Leeds Building Society Charitable Foundation.
Robin Smith, Chairman said:
"We have received a record number of votes and overwhelming support from our members, with each director receiving over 95% of votes in favour. As an independent mutual building society with one member, one vote, I am delighted with this emphatic endorsement of the Society’s sustainable, successful business model that has seen us maintain a presence on the high street for 135 years.
"2009 has been a year of world wide economic uncertainty and the worst UK recession since the 1930’s. Despite this, we have achieved an excellent set of financial results for our members, delivering record operating profit and an increase in pre-tax profit, strengthening further our capital and reserves.
"We also saw a 71,000 increase in new savings’ members and this was a rise of 35% compared to 2008.
"As a result of our good performance, we have maintained strong credit ratings from both Fitch and Moody’s. Fitch said ‘The affirmation of Leeds Building Society’s Long and Short Term ratings, with a stable outlook, reflects the Society’s good earnings capacity, excellent cost efficiency and strong capital position.’
"Moody’s highlighted our ‘stronger profitability, good asset quality, solid funding structure and strong management of costs.
"As I said to our members at the AGM, ‘Mutuality in action’ is my rallying cry for our Board in 2010. This means that our members will continue to be at the heart of everything we do.
"We shall continue to strive to give them good savings rates and provide affordable mortgages to house-buyers. Success in these endeavours means that we are helping our members in communities throughout the country, a truly socially useful endeavour, if ever there was one."
2009 Business Highlights:
- Operating profit before impairment losses and provisions increased to a record £80.1m (2008 £68.6m).
- Pre-tax profit rises to £31.7m (2008 £20.3m).
- Capital and reserves increased to a record level of £543m (2008 £526m).
- Savings balances rose by £225m to a record level of £6.8bn.
- 71,000 new members attracted taking total membership to over 680,000.
- Efficiency improved even further in 2009:
- Cost asset ratio reducing to 45p per £100 of assets from 48p in 2008.
- Cost income ratio reduced to 36% from 40%, which was the most favourable of any building society.
- Quality of lending remains good with the average loan to value (LTV) on 2009 advances being just 50%, the same LTV as on our total residential mortgages.
- Wholesale funding ratio reduced to 23% (29% 2008).
