This was supported by strong mortgage loan growth of 15 per cent to reach £15.3 billion.
Additionally, the society saw a huge surge in online business with direct internet mortgages increasing by 44 per cent.
However pre-tax profits felt the impact of recent market turbulence.
Iain Cornish, chief executive of Yorkshire Building Society explained: "Like most major financial institutions, our pre-tax profits have been impacted by fair value and impairment losses on some of our treasury investments. The year-on-year movement in pre-tax profits was also exaggerated by a big turnaround in fair value hedging volatility.
"The figure in 2007 partly reflects the reversal of the prior year’s positive movements and partly reflects items which will themselves reverse in later years."
Low arrears figures of 0.10 per cent for accounts 12 months or more in arrears, were put down to a prudent approach to lending, alongside the fact that Yorkshire does not dabble in buy-to-let, unsecured or commercial loans.
