REG - Leeds Building Soc - Annual Financial Report

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27/02/2026 08:15

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RNS Number : 6007U  Leeds Building Society  27 February 2026

27 February 2026

Leeds Building Society delivers strong annual results and progresses
multi-year investment in digital and branch services

Leeds Building Society today reports a year of strong financial performance
and continued progress in modernising how it serves members, from improving
key digital journeys and advancing development of its new mobile app, to
ongoing investment in its UK-wide high street branch network.

Highlights from 2025 include:

·    Reaching the milestone of one million members

·    Savings balances reaching £26.1 billion (2024: £24.5 billion)

·    Strong new mortgage lending growth totalling £5.0 billion (2024:
£5.7 billion)

·   Helping 34,600 more people secure the home they want (2024: 37,200),
49% of whom were first time buyers - 17,100 in total (2024: 17,600)

·    Generating the equivalent of £225.6 million in extra interest for
members due to paying 0.90% above the market average on savings rates (2024:
£175 million extra interest).  1 

·  The Society's innovative Income Plus range, launched in December 2024,
has now supported over 900 first time buyers into home ownership. With a loan
to income ratio of 5.5 times, Income Plus mortgages offer first time buyers
(with a minimum household income of £30,000) an average of up to £66,000
more on 95% loan to value (LTV) lending.  2 

As the UK's fifth largest building society, Leeds is committed to providing
members with innovative products and a great experience. Through investment in
a multi-year technology upgrade, the Society is creating systems for the
future and by the end of 2025 had proven both savings and mortgage journeys on
its new technology platform. Development will continue into 2026, as the
Society progresses work on a mobile app and continues to strengthen the
integration between online and in‑branch services, allowing members to
manage their money however suits them best.

The Society delivered a profit before tax of £198.6 million in 2025 (2024:
underlying profit before tax £187.5 million)  3 , supported by robust growth
in mortgage lending and a strong increase in savings balances, alongside
continued investment to deliver long-term benefits for members.

At a time when many providers are scaling back face-to-face support, Leeds
Building Society continues to invest in modernising its branch network,
completing refurbishments in Harrogate, Halifax, North Shields, and relocating
its South Shields branch in 2025. Members value branch services highly,
particularly access to savings passbooks which the Society has committed to
keeping.

Alongside this, the Society continued to champion members' interests and
financial wellbeing. In 2025 it delivered over 700 free one-to-one fraud
awareness clinics in branches and communities across the UK to help protect
members from scams. The Society also actively campaigned on proposed ISA
changes to ensure the voices of savers were represented during the
government's consultation.

Annette Barnes, Interim Chief Executive Officer of Leeds Building Society,
said:

"Our performance in 2025 shows that our Society is both financially strong and
is moving confidently into the future. Over the past year we've made
significant progress in upgrading our technology, including testing our first
savings accounts and mortgage applications on our new system.

"We're committed to providing our members with innovative products and the
long-term support they need: faster and more intuitive digital experiences,
alongside the personal, human interaction that remains so important to many.
Development of our mobile app is also underway and is a key priority in 2026.

"We remain steadfast in delivering on our purpose of putting homeownership
within reach of more people, generation after generation. Helping people buy
their first home is one of the most important roles we play as a mutual, and
we're proud that nearly half of our new mortgages in 2025 supported first time
buyers."

Further 2025 highlights include:

Members

·   Member focus: our member satisfaction score remained high at 94% in
2025 (2024: 94%)  4  and the Society's Trustpilot score ended the year at 4.8
out of 5.

·    Responsible lending: the Society maintained low arrears levels at
0.57% (2024: 0.61%), a testament to the hard work of its teams to support
members facing financial difficulty.

·    Strong member returns: Generating the equivalent of £225.6 million
in extra interest for members due to paying 0.90% above the market average on
savings rates (2024: £175 million extra interest)  5 

·    Green additional borrowing: product launched in 2025, aligned with
the principles of the Green Finance Institute, to support existing residential
or buy to let mortgage holders to decarbonise their property.

Colleagues and partners

·   Colleague engagement: engagement levels remained high at 8.4 out of 10
in 2025 (2024: 8.4 out of 10), putting the Society in the top 25% of UK
financial services sector employers.

·    Gold accredited inclusivity: the Society became the first
organisation to have retained a Gold accreditation in the Inclusive Employers
Standard.

·  Broker net promotor score: improved to 63 out of 100 in 2025 supported
by improvements in broker servicing and communication (2024: 58 out of 100).

·    Award-winning shared ownership proposition: the Society was awarded
'Best Shared Ownership Lender' for the tenth year in a row at the 2025 What
Mortgage Awards.

Communities

·    Making a difference: the Society awarded over £1,013,000 in 2025,
supporting over 270 charities and community groups.  6 

·   Exceeded fundraising target for Barnardo's: colleagues and members
helped the Society achieve its fundraising target of £300,000 for Barnardo's
ahead of schedule. The target has now been increased to £500,000 by April
2027.

·    Colleague volunteering: colleagues donated over 8,000 volunteering
hours to support charities across the UK throughout the year.

·  Ethical accreditation: the Society was recognised as a Best Buy for
savings and mortgages by Ethical Consumer magazine, as well as a Which?
recommended provider for savings in 2025.

 

Ends

For full access to Leeds Building Society's Annual Report and Accounts, please
visit: LBS Financial Results | Leeds Building Society
(https://www.leedsbuildingsociety.co.uk/your-society/financial-results/)

For more information about the Society's fraud clinics please visit: Fraud
Clinics: learn how to protect yourself from scams | Article | Leeds Building
Society
(https://www.leedsbuildingsociety.co.uk/home-and-money/members/fraud-clinics-learn-how-to-protect-yourself-from-scams-/)

For more information on the Society's Income Plus mortgages please visit:
Introducing Income Plus - Offering on average £66k more* article
(https://www.leedsbuildingsociety.co.uk/intermediaries/news/2024/introducing-income-plus-offering-on-average-66k-more/)

 

Sources:

 1  The Society paid an average of 3.92% to our savers compared to the Rest of
Market average of 3.02%, which equates to an annual benefit to our savers of
£225.6m. Source: CACI's CSDB, Stock, January 2025 to December 2025, latest
data available. CACI is an independent company that provides financial
benchmarking data of the retail cash savings market. CACI is an independent
company that provides financial benchmarking data of the retail cash savings
market.

 2  Calculation based on assessment of Leeds Building Society applications
between March 2024 and August 2024 which meet Income Plus credit criteria. The
£66,000 figure is the average increase in maximum loan size when comparing
Income Plus with standard residential products.

 3  2024 underlying profit before tax excludes one-off items. There were no
one-off items during 2025.

 

 4  Overall customer satisfaction in a survey of 3,409 members from January to
December 2025 that were quite, very, or extremely satisfied.

 5  The Society paid an average of 3.92% to our savers compared to the Rest of
Market average of 3.02%, which equates to an annual benefit to our savers of
£225.6m. Source: CACI's CSDB, Stock, January 2025 to December 2025, latest
data available. CACI is an independent company that provides financial
benchmarking data of the retail cash savings market. CACI is an independent
company that provides financial benchmarking data of the retail cash savings
market.

 6  In 2025, the Society made donations of £409,444 to the Leeds Building
Society Charitable Foundation. Our other donations to charities and good
causes (including colleague match funding) during the year amounted to
£390,256. The Your Interest in Theirs schemes provided further donations of
£52,075 and £39,981 respectively to the Foundation and our main charity
partner, Barnardo's. Other charitable donations from colleagues and members
totalled £121,305 taking total donations to charities and good causes to over
£1,013,000.

 

For more information please contact:

Victoria.Camidge@leedsbuildingsociety.co.uk - 07901049333

jbrenan@leedsbuildingsociety.co.uk - 07553645576

 

 

 

 

 GROUP FINANCIAL RESULTS FOR THE YEAR ENDED 31 DECEMBER 2025

 Summary Consolidated Income Statement
                                                                                2025                                      2024
                                                                                £M                                        £M

 Interest receivable and similar income                                         1,572.1                                   1,592.1
 Interest payable and similar charges                                           (1,169.6)                                 (1,229.2)
 Net interest receivable                                                        402.5                                     362.9
 Fees and commissions receivable                                                5.5                                       5.1
 Fees and commissions payable                                                   (1.1)                                     (0.6)
 Fair value (losses)/gains from financial instruments                           (4.9)                                     10.3
 Other operating income/(expense)                                               10.5                                      (22.1)
 Total income                                                                   412.5                                     355.6
 Administrative expenses                                                        (203.6)                                   (185.4)
 Depreciation and amortisation                                                  (11.7)                                    (10.6)
 Impairment (charge)/release on loans and advances to customers                 (0.1)                                     5.7
 Impairment of property, plant and equipment and intangible assets              -                                         (17.5)
 Provisions release/(charge)                                                    1.5                                       (10.3)
 Operating profit and profit before tax                                         198.6                                     137.5
 Tax expense                                                                    (53.1)                                    (37.6)
 Profit after tax for the financial year                                        145.5                                     99.9

 Summary Consolidated Statement of Financial Position
                                                                                31 December 2025                          31 December 2024
                                                                                £M                                        £M
 Assets
 Liquid assets                                                                  5,450.5                                   6,545.5
 Derivative financial instruments                                               129.5                                     371.1
 Loans and advances to customers                                                25,962.5                                  24,550.5
 Fair value hedge accounting adjustment                                         75.5                                      (173.1)
 Other assets, prepayments and accrued income                                   253.3                                     238.1
 Current tax assets                                                             0.1                                       -
 Intangible assets                                                              43.9                                      35.1
 Property, plant and equipment                                                  47.1                                      45.4
 Total assets                                                                   31,962.4                                  31,612.6

 Liabilities and equity
 Shares                                                                         26,069.9                                  24,529.8
 Fair value hedge accounting adjustment                                         11.7                                      8.8
 Derivative financial instruments                                               119.9                                     98.0
 Wholesale funding                                                              3,376.9                                   4,535.1
 Other liabilities and accruals                                                 77.9                                      347.3
 Current tax liabilities                                                        -                                         0.6
 Deferred tax liabilities                                                       14.9                                      25.6
 Provisions for liabilities and charges                                         0.6                                       4.2
 Retirement benefit obligation                                                  0.5                                       0.5
 Subordinated liabilities                                                       438.1                                     334.2
 Subscribed capital                                                             8.0                                       8.0
 Total equity attributable to members                                           1,844.0                                   1,720.4
 Total liabilities and equity                                                   31,962.4                                  31,612.6

 Summary Consolidated Statement of Comprehensive Income
                                                                                2025                          2024
                                                                                £M                            £M
 Fair value (losses)/gains recorded in cash flow hedge reserve                  (9.1)                         19.1
 Gains previously recorded in cash flow hedge reserve amortised through profit  (29.6)                        (27.9)
 or loss
 Fair value gains/(losses)on investment securities                              10.5                          (19.4)
 Actuarial loss on retirement benefit surplus                                   (3.4)                         (3.5)
 Revaluation gain on properties                                                 0.3                           -
 Tax on items taken directly to equity                                          8.7                           8.8
 Other comprehensive income net of tax                                          (22.6)                        (22.9)
 Profit for the year                                                            145.5                         99.9
 Total comprehensive income for the year                                        122.9                         77.0

 Summary Consolidated Statement of Cash Flows                                   2025                          2024
                                                                                £M                            £M
 Net cash flows from operating activities                                       (1,263.1)                     767.0
 Net cash flows from investing activities                                       47.0                          (1,450.4)
 Net cash flows from financing activities                                       149.2                         313.0
 Net decrease in cash and cash equivalents                                      (1,066.9)                     (370.4)
 Cash and cash equivalents at the beginning of the year                         2,595.5                       2,965.9
 Cash and cash equivalents at the end of the year                               1,528.6                       2,595.5

 Summary of key ratios                                                          2025                          2024
 Net interest margin                                                            1.27%                         1.21%
 Gross capital as a percentage of shares and borrowings                         7.78%                         7.10%
 Liquid assets as a percentage of shares and borrowings                         18.51%                        22.52%
 Profit after tax for the year as a percentage of mean total assets             0.46%                         0.33%
 Management expenses as a percentage of mean total assets                       0.68%                         0.66%

 Notes to the Financial Information

 1. The financial information set out above, which was approved by the Board of
 directors on 26 February 2026, does not constitute accounts within the meaning
 of the Building Societies Act 1986.

 

 

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