The mutually-owned Skipton Group, which includes Skipton Building Society, estate agency Connells and other businesses, reported group mortgage balances growth of 8.2% to £30.9 billion for 2024.
Skipton Building Society savings balances grew 8.9% in 2024 to £28.3 billion.
Skipton Group said 44% of its new lending was to first-time buyers (FTBs) (2023: 40%), helping over 20,000 FTBs. It said £31.7 billion (2023: £30.9bn) of lending was generated by Connells Group for UK mortgage providers, and recorded 126,590 properties under management (2023: 125,666).
Society membership grew 3% to over 1.27 million, with “£197m value returned to members (2023: £148m).”
Group profit before tax slipped to £318.6 million in 2024 from £333.4 million in 2023.
Group net interest margin fell to 1.28%from 1.53% “driven by £377m more in interest payments year-on-year, with net interest income of £488.4m, compared to £542.8m in 2023.”
The group added: “Despite net interest margin pressures, the Society performed well delivering PBT of £209.9m (2023: £283.7m). Skipton International performed similarly, with PBT of £31.0m (2023: £47.3m).
“International had similar net interest margin pressures and recorded underlying pre-tax profits in the year of £31.0m (2023: £47.3m).
“Pleasingly, Connells Group achieved profits of £61.3m (2023: £13.8m), as activity continued to recover in the housing market; compared to subdued trading last year.
“Skipton Business Finance and Jade both had a strong year of performance, with profits up 12% and 8% respectively.”
Skipton Group CEO Stuart Haire said: “2024 has been a very successful year commercially, building the capability and collaboration across our Skipton Group, as we further embed our Group structure to enable us to give more back to our members and society.
“Collectively, we have one purpose – to help more people have a home, help people save for life ahead and support long-term financial wellbeing. As we navigate societal shifts, this is as relevant today as it has been since Skipton Building Society was founded back in 1853.
“Our core businesses are directly aligned to our members’ needs; namely, to finance their homes (Home Financing and Skipton International, to make their money work harder (Money and International) and to help them buy and sell homes (Connells Group). These businesses directly benefit our members through their product and service offerings.
“In 2024 we have delivered against our purpose, with over 20,000 first-time buyers given the keys to their first home, equating to 44% of our new lending.
“As part of our commitment to providing free advice to all of our members, we also saw our skilled colleagues have over 39,000 advice conversations with members to help make their money work harder and support their long-term financial wellbeing.
“In Connells, our property group, we grew our profits by £47.5m, provided almost 79,000 exchanges on properties for sale to enable more people to get the keys to their home, and grew our lettings business to over 126,000 properties under management.
“We grew our market share in the year and maintained our clear leadership position, with over 10% of UK house listings being dealt with through our estate agency arm.
“Across our broader Group, we own Skipton Business Finance (invoice financing and asset-based lending) and Jade (AI and software company). These businesses both had a strong year of performance, with profits up 12% in Skipton Business Finance and 8% in Jade.
“The profits of these businesses are reinvested into the Society, creating a sustainable and resilient financial and service platform for our members and customers, both now and in the future.
“In combination, our Group businesses delivered another year of excellent financial performance, with Group underlying PBT of £302.3m.
“Our Group mortgage and savings growth of 8.2% and 8.9% respectively, materially beat the market and somewhat offset the reduction in margins caused by our strong member pricing strategy and Bank of England base rate reductions.
“Through high quality products and propositions, we grew our member base by 3% and now have over 1.26 million members benefiting from Skipton products and services to support their financial wellbeing.
“Our members enjoyed improved customer satisfaction across our Society, with an overall increase of 1% from the end of 2023. Through our member panel, Trustpilot reviews and colleague listening, we strive to ensure our members’ voices are always heard, so that we can continue to build on the excellent service we provide and are recognised for.
“By combining our collective efforts across the Group, and unlocking the power of our data, I believe we can continue to provide more opportunities for members to have a home, save for life ahead and support long-term financial wellbeing.
“At a time when more people are struggling to buy their first homes or change their homes, and one in three people have no savings, it is more vital than ever that we play our role in building a more resilient society.
“Alongside our products and services, raising awareness and lobbying for societal change is also core to our purpose.
“Financial education is essential to unlock better outcomes; whether it be tackling challenges for first-time buyers, narrowing the advice gap, or how we all play our part in reaching net zero by 2050. We understand that we cannot do this alone, but collectively we can make a difference, and we will play a leading role.”