Leeds Building Society said its total savings balances reached a record of £24.5 billion in 2024, over 18% higher than 2023.
The mutual said it responded to increased demand for cash ISAs, with its ISA balances reaching £15 billion, and new ISA account openings in 2024 four times higher than in 2020.
Leeds said only 7% of the Society’s members said they intended to open a stocks and shares ISA in 2025 “highlighting the ongoing appetite for tax efficient cash savings.”
The mutual also reported record mortgage lending in 2024 with a focus on first-time buyers.
Gross mortgage lending of £5.7 billion (2023: £4.4 billion) and net lending of £2.6 billion (2023: £1.5 billion), represented a 12% increase year on year.
Leeds said its year-end mortgage asset balance stood at a record high of £24.4 billion (2023: £21.8 billion) and first-time buyers represented 47% of all new mortgages in 2024.
Underlying profit before tax rose to £187.5 million. Total assets increased to £31.6 billion (2023: £28.1 billion), a record high.
Leeds said it generated the equivalent of £175 million in extra interest for its members, a new record, “as a result of paying 0.79% above the market average rate.”
Leeds Building Society CEO Richard Fearon said: “The milestone of our 150th anniversary offers the opportunity to reflect on how far our Society has come. We were helping people onto the housing ladder before the invention of the telephone and the lightbulb, and our purpose remains as relevant as ever today.
“It’s a real privilege to be announcing record-breaking results for a fourth successive year, and I’m incredibly proud of the progress we continue to make to deliver our purpose and support members.
“Our total membership reached an all-time high at the end of 2024. Mortgage completions broke records and savings balances are higher than they have ever been. Interest payments above and beyond the average market rate totalled £175.0 million, as we continue to demonstrate value to our members.
“We continue to see members opening cash ISAs, in fact ISA account openings were four times higher last year than in 2020. Building societies account for about 40% of the cash ISA market and we’re opposed to the recent suggestions to cut the amount people are allowed to save within these accounts.
“It’s naïve at best, or deliberate misinformation at worst, for fund managers to say money saved in cash ISAs is dormant. We use it to fuel our mortgage lending. If you significantly reduce that funding, mortgage rates would become more expensive for borrowers. At a time when the cost of living continues to impact millions of people, the last thing that people need is to have greater pressure on their mortgage bills.
“We’ve been helping people get on, and stay on, the housing ladder for nearly 150 years, and continue to push for real change in the housing market. We know that first-time buyers today face many barriers to entering home ownership, and we continue to find new ways to support them, including our Income Plus and Reach mortgage ranges, the former of which has been our most successful product launch ever.
“Income Plus allows first-time buyers to borrow more than they would otherwise have been able to, provided they meet specific lending criteria. There is more we can do here to help first-time buyers, and I’m supportive of the government’s proposed plans to relax lending rules, as the cap on loans over 4.5 times income has become a real obstacle to us providing more support.
“Our underlying profit of £187.5 million resulted from record trading performance in a turbulent market for both savers and borrowers. As a mutual, we don’t have any external shareholders to pay dividends to, and our strong financial performance allows us to invest significantly in our business. We opened a new branch, refurbished and relocated others and improved our online services, allowing members to better engage with us in the way that works best for them.
“Our achievements in 2024 year show the Society at its best, reflecting the talents of our colleagues and the collaborative culture they foster. We’re well-positioned to deal with any challenges that lay ahead and it’s clear that our nearly one million members continue to recognise our value. We’ll continue to invest in supporting our members and deliver our purpose which will remain unchanged, as it has for 150 years, because everyone deserves to have a place to call home.”