Leeds building society announces record savings

At a time when the UK banking sector, and the building society sector especially, is under pressure, today saw the Leeds building society announce record savings and more than 71,000 new customers over the year. This now takes the building society's membership number to 680,000 with savings now standing at £6.8 billion, an increase of £225 million over the period in question. Profits at the building society also increased by 51% to £31.7 million buoyed by an impressive control of the society's cost base - the cost income ratio is just 36%, the lowest in the sector.

The only fly in the ointment was the announcement of a £52.5 million provision set to one side against potential losses on loans and mortgages. This compares unfavourably to the £32.1 million provision put aside in 2008. However, when you take into account that the UK financial sector has just about come through one of the most difficult periods in living history these figures are by far away the most impressive of the building society sector and appear to turn recent comments about the sector on their heads.

It will be interesting to see whether other building societies have fared as well as the Leeds building society in what is still a very challenging and very difficult environment.