They show that its Tier 1 capital position improved further during the year, without recourse to taxpayer recapitalisation, and that its funding and liquidity positions were also strengthened.
The Society had no losses from the failed Lehman Bros or Icelandic banks. It has not lent in the commercial or buy-to-let mortgage market and has not acquired mortgage portfolios originated by other lenders. The society also states that it protected savers by not passing on the full impact of the Bank of England base rate cuts, which over the course of a year will make its savers £50 million better off than they would have otherwise been.
The Yorkshire says that its performance has not been immune to the global banking crisis or the economic recession, but its underlying financial strength means it is very well placed to weather the current storm.
Key highlights in 2008 show that the group remains profitable, with core operating profit at £53 million, showing a pre-tax profit at £8.3 million, impacted in part by the Financial Services Compensation Scheme (FSCS) charge for the failures of Bradford & Bingley, Icelandic and London Scottish banks. Mortgage loan grew by 3.7%.
