Bradford-based Yorkshire Building Society announced that its 2022 profit before tax rose 57% to £502.5 million as its savings balances rose £6.5 billion to a record high of just over £42 billion.

Yorkshire said its total gross mortgage lending remained high, matching 2021 volumes at £10.3 billion, while 2022 net lending was £3 billion (2021: £3.6bn).

Mortgage balances increased to £43.7 billion from £41.9 billion.

The member-owned society said it made multiple increases to its savings rates over the year.

“Overall rates were on average 0.56 percentage points higher than the market average over 2022 (2021: 0.32 percentage points higher), equating to £198.6m of additional interest paid …” said Yorkshire.

“Retail deposit performance and continued wholesale issuance has allowed early repayment of a proportion of government funding, TFSME, in 2022,” said Yorkshire.

“This strategy of early exit from TFSME reflects the non-structural nature of TFSME as part of the society’s overall funding profile …

“Net interest income was £724.1m in 2022, increasing £186.7m year on year (2021: £537.4m), and represents an improved net interest margin of 1.30% (2021: 1.07%).

“The improvement reflects increased interest income in light of the frequent and material increases made to Bank Rate, alongside the successful execution of trading strategies …”

Yorkshire Building Society has assets of £58.8 billion and nearly three million customers. Its subsidiary companies include Accord Mortgages Limited.