Yorkshire Building Society: Record number of savings accounts opened in 2023

The society, which has 110 branches and employs around 3,400 staff, said it grew both its savings and mortgage balances in 2023. Savings deposits from members increased to £47.1bn from £42bn the previous year and, despite operating in a market which has seen mortgage lending drop by almost 30 per cent, the society increased mortgage balances to £46.8bn from £45.2bn in 2022. It said a strong trading performance in both savings and mortgages, combined with the rising interest rate environment, supported an increase in core operating profit to £449.9m from £425.6m the year before.

A record 693,000 savings accounts opened in 2023, compared with 537,000 the year before.

Susan Allen, Chief Executive of Yorkshire Building Society, said:

“As I complete my first year as chief executive, I am proud to lead such a strong and sustainable organisation focused on supporting its members, customers and communities. More people are choosing us for their savings and, despite the mortgage market being much smaller in 2023, we increased our market share and one in three of our new owner-occupied mortgages was to a first-time buyer (FTB).

“Savings balances represent a primary source of financial wellbeing and, at times like these, the peace of mind that comes from having a rainy-day fund can make all the difference.

" Our own research, published within our Saving the Nation report, illustrated the dynamics of savings behaviour in the UK over the last five years and the widening gap between those who are able to save on a regular basis and those who are not. As a mutual, we don’t have external shareholders so we can return more to our members."

Ms Allen said the society is in a “robust financial position” and is continuing to increase its customer satisfaction scores.

She added: “With world events currently driving continued economic volatility, a good deal remains dependent on how the interest rate environment evolves, and the speed and efficacy at which monetary policy action can return inflation to the Bank of England’s target of 2 per cent.

She added: “Current market sentiment indicates we may have reached the end of bank rate rises though, as ever, this is subject to change. In such a context it becomes increasingly important that we invest our resources purposefully and selectively, focusing on the things that will bring the most benefit to our membership in the long term.”