TIDMFN19
RNS Number : 9703H
Skipton Building Society
02 August 2023
FINANCIAL RESULTS RELEASE 2 August 2023
In our 170(th) year, Skipton Group continues to help members and
customers through uncertain times, enabled by the capabilities and
resources within the Group to realise the benefits of
membership
Group performance
The Skipton Group which includes the UK's largest estate agency,
performed strongly in the first half of 2023:
-- Group profit before tax (PBT) of GBP148.9m (June 2022:
GBP160.0m); with underlying Group PBT ([1]) of GBP143.8m (June
2022: GBP148.5m).
-- Our robust Group financial performance has enabled
profit-reinvestment in 2023 for members, most notably:
- The launch of our Track Record mortgage to help those trapped
in expensive rents access the finance needed to own a home of their
own;
- Access to a new highly competitive member benefit regular
saver product that pays an interest rate of 7.5%;
- A free Home Energy Efficiency Assessment Report (EPC Plus)
offered to all members, to help them on their journey to greening
their homes and making them more energy efficient;
- Over GBP57m given to members through above market average savings rates;
- Ever-improving (and award-winning) customer service, despite increased demand; and
- Within our Estate Agency, we have maintained our market share,
helping one in ten of home buyers and sellers with their individual
needs and, we have seen improvements in transaction values and
volumes from Q1 to Q2.
-- We have delivered against our strategic priorities, with highlights being:
- GBP3.4bn of mortgage advances, up 27% year on year;
- Nearly 9,000 first-time buyers helped, up 43% year on year;
- Mortgage arrears of three months or more remained low at 0.18% of mortgage assets;
- Increased market share in both mortgages and savings;
- We paid 0.61% above the market average to our savers;
- Financial advice customers up 3.2%; and
- Committed to donating 1% of the Group's PBT to causes linked to our purpose.
-- Group financial performance is underpinned by our strong
asset quality, capitalisation, liquidity and funding profiles and
these firm, sustainable foundations have enabled us to deliver the
following achievements:
- Society membership growth of 3.1% to over 1.17 million.
- Group mortgage balances growth of 6.8% to GBP27.2bn.
- Society savings balances growth of 5.2% to GBP23.6bn.
- A liquidity coverage ratio (LCR) ([2]) of 186% at June 2023
(December 2022: 175%). Liquidity levels are well above regulatory
limits in view of the challenges recently seen by some US
banks.
- Group UK residential mortgages in arrears by three months or
more are only 0.18% of mortgage accounts at the end of June 2023,
well below the industry average.
- A strong capital position - Common Equity Tier 1 (CET 1) and
leverage ratios(2) of 26.3% and 6.9%
(December 2022: 25.8% and 6.8%) respectively ([3]) .
- Group net interest margin increased to 1.62% (June 2022:
1.29%) reflecting the rising interest rate environment which
created opportunities in the period to generate higher net income
which we shall invest to deliver future benefits for our
members.
- Skipton Building Society's PBT increased to GBP127.8m (June 2022: GBP101.9m).
"We are making good progress in both growth and transformation
initiatives across our three strategic priorities - Helping More
People Have a Home; Making Money Work Harder; and Making Membership
Matter.
We have an ambition to make a positive impact through Buying
& Selling Homes with our Estate Agencies and by financing homes
through our Home Financing business, in order to tackle the UK's
housing crisis by enabling more first-time buyers to realise their
homeownership aspirations without access to 'the bank of Mum and
Dad'.
The launch of our life-changing Track Record mortgage enables
people trapped in rental cycles to access the property ladder for
the first time, via the only deposit-free 100% mortgage. Not only
does this help people realise their home-ownership aspirations,
they are saving money too compared to more expensive rental
payments. The value of this product has been clearly demonstrated,
with applications totalling over GBP28m since its launch in
May.
We are embarking on our Transformation Programme in order to
further upgrade our digital capability to sit alongside our human
touch and member centric service.
We are able to provide free financial advice to our members,
helping them decide on their saving and investment options, and
ultimately to make their money work harder . With access to a
financial adviser in every one of our branches, this is a service
that sets us apart from competitors.
We have aligned our structure to our purpose. Our Group
structure and the leadership team has been strengthened in the
first half of 2023 to help turn our three priorities, and all our
Group potential, into a reality. It is our Group platform that
allows us to support members and customers in every stage of the
home-owning process - saving, buying, protecting, greening, selling
and investing".
Stuart Haire, Skipton Group Chief Executive
Group Chief Executive's Statement
Our founding purpose is to help more people have a home, help
people save for life ahead and support long term financial
wellbeing. We have a compelling strategy for 2023, with three clear
priorities to make a difference, centred on leveraging Skipton
Group's unique business mix for the long-term best interests of our
members.
Priority number one is Helping More People Have a Home - where
we will continue to develop new capability to support more people
into homeownership and improve the customer journey for buying and
selling homes, whilst continuing to grow our lettings business.
Priority number two is Making Money Work Harder - where we will
continue to invest more to ensure our members receive above-market
interest rates for their savings and have access to free financial
advice to help them plan their financial futures.
Our third priority is Making Membership Matter - where our
members will see and feel the value of Skipton membership.
In May we took a stand, by launching a new option for aspiring
first-time buyers that no lender has before - our Track Record
mortgage helps those trapped in expensive rents to get access to a
mortgage. I feel very strongly that we can and should do more to
support our potential and current members with this massive housing
challenge; it links clearly to our founding purpose and why
building societies exist. I could not be prouder of the impact it
is having.
In June we launched a new highly competitive member benefit
product in the form of a regular saver that pays an interest rate
of 7.5%, allowing members to make the most of their hard-earned
savings. Earlier this year we offered all our members a free Home
Energy Efficiency Assessment Report (EPC Plus), to help them on
their journey to greening their homes and making them more energy
efficient.
The Skipton Group touches each aspect of the property journey
like no other organisation; from first-to-market savings products
like the cash Lifetime Individual Savings Account (Lifetime ISA);
to innovative mortgage products; combined with the UK's largest
estate agency supporting members, sellers and buyers alike. We are
making good progress to leverage the Group's structure, unique mix
of businesses and, of course, our proud mutual status to be there
during the moments that matter to our members. Our Society's
performance in the first half of 2023 casts no doubt on just how
valued it is - with growth in member numbers, mortgage and savings
balances. Again, I want to thank my colleagues for all their hard
work.
I joined Skipton Group with a passion to collaborate with
like-minded colleagues who want to help as many people as possible
in achieving their financial and home security dreams. Looking
ahead, we are uniquely placed to help even more people have a home,
save for their life ahead and deal with these testing financial
times.
Individual Business Performance
Home Financing
Our Home Financing business is designed to provide finance in
order to access the housing market and 'Help More People Have a
Home'. Performance in the first half of 2023 was strong:
- Group mortgage balances growth of 6.8% to GBP27.2bn;
- Helping more people on to the housing ladder through the
launch of our new, no deposit Track Record mortgage;
- Overall, we helped 8,951 first-time buyers in the period (June
2022: 6,200) get financing for their first homes;
- Variable rate mortgage customers shielded from base rate
rises, with only 0.5% of the 1.5% rise in the period passed on to
our Mortgage Variable Rate (MVR) and Standard Variable Rate (SVR)
borrowers;
- The Group's UK residential mortgages in arrears by three
months or more remained low, totalling 324 cases at June 2023,
representing only 0.18% of mortgage accounts (December 2022: 285
cases, representing 0.17% of mortgage accounts), which compares
very favourably to the industry average of 0.72% ([4]) . This is
testament to our strong up front lending controls and proactive
credit management, whereby we closely monitor and manage mortgages
that have fallen into arrears working closely with borrowers to
find solutions that are appropriate for their individual
circumstances. Furthermore, we have signed up to the Mortgage
Charter, which outlines the standards lenders have agreed to uphold
for customers affected by the increase in mortgage rates and the
elevated cost of living ; and
- Enhanced service to our mortgage customers - the Home
Financing business has enhanced its focus on how we monitor our
success to ensure we are always providing outstanding experience to
our members and customers. This is reflected in the Home Financing
businesses strong net customer satisfaction score of 94% ([5]) .
Our service remained strong despite large application volumes, with
average time to offer of 8.6 days.
Money
Our Money business helps our members' 'Money Work Harder' and
combines our savings and financial advice businesses with our
online, branch and contact centre capabilities. Performance
highlights include:
- Society savings balances growth of 5.2% to GBP23.6bn;
- In the first five months of the year (being the latest
available data) we paid 0.61% above the market average to savers -
this equates to an extra GBP57.5m in our members' pockets ([6])
;
- Being the UK's first and one of the biggest providers of the
cash LISA, the Society now holds balances of GBP1.2bn (December
2022: GBP1.1bn) for LISA customers saving hard for their first home
or for later life; these customers benefitted from Government
bonuses in the period of GBP38.3m (June 2022: GBP45.8m); and
- Savings customer satisfaction remains strong - our Money
business achieved a net customer satisfaction rating of 86% in the
first half of the year(5) .
Connells group
- The fallout from the mini-budget stalled the housing market in
Q4 2022 and Connells group entered 2023 with a sales pipeline 26%
lower than the prior year. The challenging economic environment
continued to impact upon the housing market in the first half of
the year, resulting in Connells' revenue in the period being
GBP452.9m, which was 10% down on the first six months of 2022
(GBP502.7m);
- As a result, the group incurred a net loss before tax of
GBP(5.8)m (June 2022: GBP28.9m profit). Earnings before interest,
tax, depreciation and amortisation (EBITDA) [7] , a common measure
of estate agency performance, was GBP16.4m compared with GBP63.1m
for the same period in 2022;
- Nevertheless, Connells has maintained its market share (of
10%), and continues to have a strong balance sheet and substantial
cash reserves; consequently, Connells group remains well placed to
capitalise on whatever market conditions present themselves going
forward;
- Throughout the first half of 2023 we have seen positive signs
of improvement as transaction volumes recover. Rather than waiting,
home buyers remain active but are exercising caution, with many
adjusting their property expectations and approach to
financing.
Other business lines
Skipton International Limited (SIL)
- Our Guernsey-based business carries out mortgage lending in
the Channel Islands and UK and accepts deposits from an
international customer base.
- SIL continues to make a strong contribution to the Group, with
pre-tax profits of GBP24.5m (June 2022: GBP18.0m) and mortgages and
savings balances of GBP2.1bn and GBP2.2bn respectively (December
2022: GBP2.0bn and GBP2.2bn respectively).
- The quality of the mortgage book remains excellent, with no
cases in arrears by three months or more (December 2022: no
cases).
Skipton Business Finance (SBF)
- SBF, our asset-based provider of working capital facilities to
small and medium-sized enterprises (SMEs), generated profits of
GBP4.5m in the period (June 2022: GBP3.2m).
- Following removal of Covid-related Government support schemes,
and in light of UK inflationary pressures building across the UK,
SBF has been able to help more SMEs amidst increasing demand for
working capital support, with a total portfolio comprising 865
clients as at June 2023 (December 2022: 838); with total drawn
funds of GBP160.8m at June 2023 (December 2022: GBP138.3m).
- The quality of SBF's lending during these turbulent times
continues to be excellent, with impairment as a percentage of drawn
funds remaining low at 0.7% (December 2022: 0.8%) .
Jade Software Corporation
- Jade Software Corporation is a software solutions provider
based in New Zealand that specialises in digital, AI and large IT
enterprise solutions, as well as being the provider of our core
database and software development language. Jade contributed PBT of
GBP0.5m to the Group (June 2022: GBP0.3m).
Demonstration of how we are delivering on our strategy in
2023
Helping More People Have a Home
Charlotte Harrison, Interim CEO - Home Financing said: "We help
one in ten individuals buy and sell homes in the UK through our
estate agency network, whilst the Society has specifically
supported 8,951 first-time buyers in the period (including a record
1,038 completions in June) - providing financing to get the keys to
their first home".
- The Group's mortgage portfolio has grown by 6.8% to GBP27.2bn
at June 2023 (June 2022: 3.1% to GBP24.0bn); increasing our market
share of mortgage balances to 1.60% (December 2022: 1.49%) [8]
.
- Our International business SIL, based in Guernsey, Channel
Islands has developed a UK mortgage proposition specifically for UK
buy-to-let investors resident overseas. The offering is as simple
and hassle-free as possible - no product fees when your existing
rate matures; approved in principle within 10 minutes online, by
phone or video (Zoom or Teams); and a personal point of contact
throughout the process.
- Only 0.5% of the 1.5% rise in Bank of England base rate seen
this year has been passed on to our MVR and SVR borrowers.
Consequently, we have one of the lowest mortgage revert rates in
the market at 6.79% (as at 1 August 2023).
Making Money Work Harder
Andrew Bottomley, CEO - Money said: "We are committed to paying
a competitive savings rate and have passed on 1.13% of the 1.5%
change in base rate increases seen in the period to our savers,
meaning our minimum variable savings rate has increased from 1.75%
to 3.0% at the reporting date" .
- In June we launched a new highly competitive member benefit
product in the form of a regular saver that pays an interest rate
of 7.5%, allowing members to make the most of their hard-earned
savings.
- The Society's competitive savings rates resulted in balances
growing in the period by 5.2% (or GBP1.2bn) to GBP23.6bn (June
2022: 6.0% (or GBP1.2bn) to GBP21.0bn), compared to the UK savings
market where net savings grew by only 1.7% [9] .
- Free financial advice is now being offered to all members,
helping them decide their saving and investment goals . In the
first half of 2023, 5,649 customers attended appointments to obtain
financial advice; and as at June 2023 we had 48,237 financial
advice customers, with funds under management totalling GBP4.1bn
(December 2022: GBP3.9bn).
- Skipton International offers some of the best offshore
interest rates and is committed to providing personal service - a
winning combination when depositing money in an offshore savings
account. We offer Sterling and US Dollar savings in fixed rate
bonds, notice and easy access accounts.
Making Membership Matter
- In January, Skipton extended the offer of a free EPC Plus to
all Society savings and mortgage members, furthering our ambition
to play a leading role in helping green the UK's housing stock.
Since launch in November 2022, 7,198 surveys have been conducted
providing GBP492k of benefit to members, with a further 133
scheduled (as of 30 June ).
- The Society was proudly awarded the CCA Global Accreditation
for Customer Experience recognising our commitment to driving
service excellence. In the period we have increased our number of
customer-facing colleagues against the backdrop of more members
wanting to talk to us. Year-to-date the average time taken to
answer mortgage-related calls is 105 seconds, whilst for savings
related calls it is 140 seconds, despite the heavy call volumes
seen over a record-breaking ISA season.
- Skipton International has been awarded the Platinum Trusted Service Provider Award by Feefo.
- Our commitment to our members through our products and
services has also been recognised by independent third parties,
being awarded Top Rated Lender in the Mortgage Finance Gazette
& Mortgage Solutions Rated for Service Awards 2023 - we were
one of only five lenders voted 'Top Rated' in every category.
- The branch network continues to play a key role in the Group's
future plans. Skipton Building Society has 87 branches [10] , as
part of a wider Group of over 1,200 branches including those of
Connells. We will continue to invest in our network to ensure our
branches remain relevant for customers now and in the future, as
well as helping our members and customers in the different ways
they choose to interact with us, such as by telephone and Skipton
Link.
- Skipton Group has continued to deliver on our core values to
support a better society today, for a better future tomorrow;
making Environmental, Social and Governance (ESG), including
climate resilience, central to our decision making. In 2023 we have
strengthened the wider Group's engagement with our standards.
- We are adapting our services in order to become more
accessible and inclusive. Amongst many initiatives, we have added
British Sign Language (BSL) interpretation to the disclosure videos
in branch and started to introduce service counters that now have a
lowered central section, making them more accessible; whilst in
June we joined the Hidden Disabilities scheme.
- The Skipton Group is committed to donating 1% of its pre-tax
profit to charity each year. For 2023 this means donating over
GBP2.9m to good causes and we're working to ensure members can have
their say over who we support. We will deliver these funds through
purposeful and aligned charity partnerships, the Skipton Building
Society Charitable Foundation (which has now donated over GBP3m
since its launch in 2000), and through colleague and community
schemes.
Skipton Building Society
Results for the half year ended 30 June 2023
Consolidated income statement
6 months 6 months 12 months
to 30.06.23 to 30.06.22 to 31.12.22
GBPm GBPm GBPm
===================================================================== ============= ============= =============
Interest receivable and similar income:
Accounted for using the effective interest rate method 770.3 307.6 806.7
Other 15.3 4.6 15.8
===================================================================== ============= ============= =============
Total interest receivable and similar income 785.6 312.2 822.5
Interest payable and similar charges (507.9) (117.9) (398.1)
===================================================================== ============= ============= =============
Net interest receivable 277.7 194.3 424.4
Fees and commissions receivable 474.7 539.4 1,092.6
Fees and commissions payable (2.6) (6.9) (14.7)
Fair value gains on financial instruments mandatorily held at FVTPL 3.4 11.8 1.3
Profit on disposal of subsidiary undertakings - 0.1 0.1
Other income 1.7 2.2 3.9
===================================================================== ============= ============= =============
Total income 754.9 740.9 1,507.6
Administrative expenses (595.7) (581.4) (1,188.5)
===================================================================== ============= ============= =============
Operating profit before impairment and provisions 159.2 159.5 319.1
Impairment (losses) / credit on loans and advances to customers (9.3) 2.2 (17.1)
Impairment credit / (losses) on liquid assets 0.1 (0.1) (0.1)
Impairment of goodwill - - (0.8)
Realised losses on equity release portfolio (0.5) (0.4) (0.7)
Provisions for liabilities (0.6) (1.2) (1.6)
===================================================================== ============= ============= =============
Profit before tax 148.9 160.0 298.8
Tax expense (36.2) (36.2) (67.8)
===================================================================== ============= ============= =============
Profit for the period 112.7 123.8 231.0
===================================================================== ============= ============= =============
Profit for the period attributable to:
Members of Skipton Building Society 112.8 123.8 231.2
Non-controlling interests (0.1) - (0.2)
===================================================================== ============= ============= =============
112.7 123.8 231.0
===================================================================== ============= ============= =============
Underlying Group PBT for the six months ended 30 June 2023 was
GBP143.8m (six months ended 30 June 2022: GBP148.5m; year ended 31
December 2022: GBP297.7m) as shown below:
6 months 6 months 12 months
to 30.06.23 to 30.06.22 to 31.12.22
GBPm GBPm GBPm
======================================== ============= ============= =============
Total Group profit before tax 148.9 160.0 298.8
Less profit on disposal of subsidiary
undertakings - (0.1) (0.1)
Add back / (less) fair value losses /
(gains) in relation to equity release
portfolio (note 1) 3.2 (11.5) 9.8
(Less) / add back fair value (gains)
/ losses on share warrants and equity
share investments (note 2) (8.3) 0.1 (11.6)
Add back impairment of goodwill - - 0.8
======================================== ============= ============= =============
Underlying Group profit before tax 143.8 148.5 297.7
======================================== ============= ============= =============
Notes
1. The GBP3.2m loss (six months ended 30 June 2022: GBP11.5m
gain; year ended 31 December 2022: GBP9.8m loss) is comprised of
fair value losses on the portfolio of GBP17.3m (six months ended 30
June 2022: GBP61.5m losses; year ended 31 December 2022: GBP132.3m
losses), and fair value gains of GBP14.1m (six months ended 30 June
2022: GBP73.0m gains; year ended 31 December 2022: GBP122.5m gains)
on the associated derivatives held to economically hedge these fair
value movements, included in the 'Fair value gains on financial
instruments mandatorily held at FVTPL' line in the Income
Statement.
2. Included in the 'Fair value gains on financial instruments
mandatorily held at FVTPL' line in the Income Statement.
Skipton Building Society
Results for the half year ended 30 June 2023
Consolidated statement of comprehensive income
6 months to 30.06.23 6 months to 30.06.22 12 months to 31.12.22
GBPm GBPm GBPm
================================================ ===================== ===================== ======================
Profit for the period 112.7 123.8 231.0
================================================ ===================== ===================== ======================
Other comprehensive income:
Items that will not be reclassified to profit
or loss:
Remeasurement losses on defined benefit
obligations (3.8) (4.0) (6.7)
Gains / (losses) on equity share investments
designated at FVOCI - 0.9 (8.5)
Income tax on items that will not be
reclassified to profit or loss 1.0 - 0.4
================================================ ===================== ===================== ======================
(2.8) (3.1) (14.8)
Items that may be reclassified subsequently to
profit or loss:
Movement in cash flow hedging reserve:
Gains ta ken to equity 3.9 35.0 47.8
Realised losses / (gains) transferred to
Income Statement 14.4 (17.0) (12.8)
Movement in fair value reserve (debt
securities):
Losses ta ken to equity (2.2) (12.3) (22.3)
Impairment (credit) / loss allowance on debt
securities held at FVOCI (0.1) 0.1 -
Movement in cost of hedging reserve:
(Losses) / gains taken to equity (1.9) 1.5 3.8
Exchange differences on translation of foreign
operations (0.7) 0.1 0.4
Income tax on items that may be reclassified to
profit or loss (4.0) (1.9) (4.4)
================================================ ===================== ===================== ======================
9.4 5.5 12.5
================================================ ===================== ===================== ======================
Other comprehensive income / (expense) for the
period, net of tax 6.6 2.4 (2.3)
================================================ ===================== ===================== ======================
Total comprehensive income for the period 119.3 126.2 228.7
================================================ ===================== ===================== ======================
Total comprehensive income attributable to:
Members of Skipton Building Society 119.6 126.2 228.9
Non-controlling interests (0.3) - (0.2)
================================================ ===================== ===================== ======================
119.3 126.2 228.7
================================================ ===================== ===================== ======================
Skipton Building Society
Results for the half year ended 30 June 2023
Consolidated statement of financial position
As at As at As at 31.12.22
30.06.23 30.06.22
GBPm GBPm GBPm
======================================================== ========== ========== ===============
Assets
Cash in hand and balances with the Bank of England 3,520.1 2,843.0 3,520.5
Loans and advances to credit institutions 538.6 471.6 631.9
Debt securities 2,939.0 2,904.9 2,640.3
Derivative financial instruments 1,794.1 759.3 1,355.1
Loans and advances to customers held at amortised cost 25,859.3 23,355.0 24,452.3
Loans and advances to customers held at FVTPL 1.1 1.1 1.0
Equity release portfolio held at FVTPL 265.6 348.0 278.7
Current tax asset 5.3 - 18.3
Investments in joint ventures 9.7 9.1 10.1
Equity share investments mandatorily held at FVTPL 1.4 2.4 1.2
Equity share investments designated at FVOCI - 9.4 -
Property, plant and equipment 72.0 70.2 71.8
Right-of-use assets 104.2 96.3 106.7
Investment property 5.7 6.3 6.0
Intangible assets 319.0 334.1 323.4
Deferred tax asset 6.3 30.3 13.1
Retirement benefit surplus - 1.5 -
Other assets 137.1 147.1 140.9
======================================================== ========== ========== ===============
Total assets 35,578.5 31,389.6 33,571.3
======================================================== ========== ========== ===============
Liabilities
Shares 23,398.0 20,902.3 22,349.6
Amounts owed to credit institutions 3,062.2 2,556.4 2,963.3
Amounts owed to other customers 2,592.6 2,182.8 2,339.2
Debt securities in issue 2,647.3 2,614.0 2,591.6
Derivative financial instruments 550.1 323.0 415.6
Current tax liability 2.7 1.4 1.5
Lease liabilities 107.8 110.3 113.0
Other liabilities 74.7 100.1 83.7
Accruals 72.0 72.2 93.1
Deferred income 10.2 5.6 9.9
Provisions for liabilities 33.3 36.5 34.7
Retirement benefit obligations 30.5 30.5 29.6
Subordinated liabilities 643.3 322.3 311.8
Subscribed capital 41.6 41.6 41.6
======================================================== ========== ========== ===============
Total liabilities 33,266.3 29,299.0 31,378.2
Members' interests
General reserve 2,286.4 2,071.3 2,176.4
Fair value reserve (18.7) (0.3) (16.9)
Cash flow hedging reserve 42.8 17.4 29.6
Cost of hedging reserve (2.4) (2.8) (1.1)
Translation reserve 4.2 4.6 4.9
======================================================== ========== ========== ===============
Attributable to members of Skipton Building Society 2,312.3 2,090.2 2,192.9
Non-controlling interests (0.1) 0.4 0.2
======================================================== ========== ========== ===============
Total members' interests 2,312.2 2,090.6 2,193.1
======================================================== ========== ========== ===============
Total members' interests and liabilities 35,578.5 31,389.6 33,571.3
======================================================== ========== ========== ===============
Skipton Building Society
Results for the half year ended 30 June 2023
Consolidated statement of cash flows
6 months to 6 months to 12 months to
30.06.23 30.06.22 31.12.22
GBPm GBPm GBPm
=========================================================================== ============ ============ =============
Cash flows from operating activities
Profit before tax 148.9 160.0 298.8
Adjustments for:
Impairment losses / (credits) on financial instruments 9.7 (3.9) 18.1
Depreciation and amortisation 36.2 38.4 76.8
Impairment of property, plant and equipment, right-of-use assets and
investment property 0.9 0.2 (0.5)
(Profit) / loss on disposal of property, plant and equipment, investment
property and intangible
assets - (0.1) 0.7
Fair value losses on certain financial instruments held at FVTPL 8.9 61.3 120.5
Interest on subordinated liabilities and subscribed capital 9.9 5.8 11.8
Interest on lease liabilities 1.0 1.0 2.1
Profit on disposal of subsidiary undertakings - (0.1) (0.1)
Other non-cash movements 11.5 11.5 5.8
=========================================================================== ============ ============ =============
227.0 274.1 534.0
Changes in operating assets and liabilities:
Net movement in prepayments and accrued income (6.6) (11.3) (3.4)
Net movement in accruals and deferred income (20.8) (10.1) (4.9)
Net movement in provisions for liabilities (1.4) 0.1 (1.7)
Net movement in fair value of derivatives (304.5) (500.5) (1,003.7)
Net movement in fair value adjustments for hedged risk 155.8 331.1 664.0
Fair value movements in debt securities 11.7 58.0 93.8
Net movement in loans and advances to customers (1,723.7) (722.7) (2,223.8)
Net movement in shares 1,160.4 1,180.2 2,689.7
Net movement in amounts owed to credit institutions and other customers 352.7 283.5 849.9
Net movement in debt securities in issue 71.5 394.5 368.4
Net movement in loans and advances to credit institutions 55.3 (13.0) (115.9)
Net movement in other assets 18.1 (14.3) 15.0
Net movement in other liabilities (9.3) (6.8) (22.7)
Income taxes paid (18.1) (33.1) (67.9)
=========================================================================== ============ ============ =============
Net cash flows from operating activities (31.9) 1,209.7 1,770.8
=========================================================================== ============ ============ =============
Skipton Building Society
Results for the half year ended 30 June 2023
Consolidated statement of cash flows (continued)
6 months to 6 months to 12 months to
30.06.23 30.06.22 31.12.22
GBPm GBPm GBPm
=========================================================================== ============ ============ =============
Net cash flows from operating activities (31.9) 1,209.7 1,770.8
=========================================================================== ============ ============ =============
Cash flows from investing activities
Purchase of debt securities (1,087.5) (1,140.1) (1,995.5)
Proceeds from maturities and disposals of debt securities 774.7 370.3 1,447.2
Contingent consideration received in respect of prior period disposals of
subsidiary undertakings
(net of costs) - 6.4 6.4
Other investing activities (12.5) (6.2) (18.1)
=========================================================================== ============ ============ =============
Net cash flows from investing activities (325.3) (769.6) (560.0)
=========================================================================== ============ ============ =============
Cash flows from financing activities
Exercise of share options in subsidiary management incentive scheme (3.1) (8.9) (8.9)
Exercise of put options held by non-controlling shareholders (0.4) (2.0) (3.0)
Proceeds from issue of subordinated liabilities 347.9 - -
Interest paid on subordinated liabilities and subscribed capital (5.9) (5.8) (11.8)
Interest paid on lease liabilities (1.0) (1.0) (2.1)
Payment of lease liabilities (18.7) (23.4) (50.7)
=========================================================================== ============ ============ =============
Net cash flows from financing activities 318.8 (41.1) (76.5)
=========================================================================== ============ ============ =============
Net (decrease) / increase in cash and cash equivalents (38.4) 399.0 1,134.3
Cash and cash equivalents at 1 January 3,615.2 2,481.0 2,481.0
(Increase) in impairment loss allowance on cash and cash equivalents - - (0.1)
=========================================================================== ============ ============ =============
Cash and cash equivalents at end of period 3,576.8 2,880.0 3,615.2
=========================================================================== ============ ============ =============
Analysis of the cash balances as shown within the Statement of
Financial Position:
As at As at As at
30.06.23 30.06.22 31.12.22
GBPm GBPm GBPm
==================================================== ========== ========== ==========
Cash in hand and balances with the Bank of England 3,520.1 2,843.0 3,520.5
Mandatory reserve deposit with the Bank of England (103.1) (90.9) (96.7)
==================================================== ========== ========== ==========
3,417.0 2,752.1 3,423.8
Loans and advances to credit institutions 159.8 127.9 191.4
==================================================== ========== ========== ==========
Cash and cash equivalents at end of period 3,576.8 2,880.0 3,615.2
==================================================== ========== ========== ==========
Skipton Building Society, Principal Office: The Bailey Skipton,
BD23 1DN
Skipton Building Society is a member of the Building Societies
Association. Authorised by the Prudential Regulation Authority and
regulated by the Financial Conduct Authority and the Prudential
Regulation Authority, under registration number 153706, for
accepting deposits, advising on and arranging mortgages and
providing Restricted financial advice. Principal Office, The
Bailey, Skipton, North Yorkshire BD23 1DN.
[1] The following items are excluded from statutory profit to
arrive at underlying profit: gains or losses on disposal of Group
undertakings, impairment of Group undertakings and goodwill, fair
value movements in relation to the equity release portfolio and
fair value movements in equity share investments and share
warrants.
[2] The LCR, CET 1 ratio and leverage ratio are each presented
in respect of Skipton's prudential consolidation group; this
comprises the entire Group except Connells and a small number of
other entities.
[3] The Society submitted updated internal ratings-based (IRB)
models to the Prudential Regulation Authority (PRA) in 2021; the
process for review and approval is ongoing and therefore the models
remain subject to change until the models are approved by the PRA.
At present a temporary model adjustment (TMA) has been applied to
estimate what the final impact will be in moving to regulator
approved hybrid IRB models.
[4] Source: UK Finance industry arrears data (residential
mortgages in arrears by more than three months) at 31 March 2023 -
being the latest available data.
[5] As measured from an in-house relationship survey of c.4,000
Home Financing and c.4,000 Money members and customers. The
customer satisfaction scores are calculated as the percentage of
customers who are satisfied (those scoring satisfaction as 5, 6 or
7 minus those scoring 1, 2 or 3 on a scale of 1-7).
[6] Source: CACI's Current Account & Savings Database, Stock
- Jan-May 2023
([7]) Connells' EBITDA excludes interest charged on debt
financing, interest received, taxes paid, depreciation and
amortisation, gains/losses on disposal of investments, impairment
and fair value movements of group undertakings, profit or loss from
joint ventures and dividends paid to non-controlling interests.
[8] Source: Bank of England statistics, 'Lending secured on
dwellings' for the five months to May 2023.
[9] Source: Bank of England Statistics, May 2023
[10] In September we will close five of the Society's branches
following a review of member usage, nearby alternatives and
associated costs to maintain presence at these locations; we
concluded this did not represent good value to members in these
areas.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
IR SSUFMFEDSESA
(END) Dow Jones Newswires
August 02, 2023 02:00 ET (06:00 GMT)
Skip.b.s 29 (LSE:FN19)
Graphique Historique de l'Action
De Fév 2025 à Mar 2025
Skip.b.s 29 (LSE:FN19)
Graphique Historique de l'Action
De Mar 2024 à Mar 2025
