New record at Leeds & Holbeck

Leeds & Holbeck Building Society said yesterday it achieved its best ever profits last year despite the slowing housing market.

Pre-tax earnings rose by 14% to£41.7m. Lending and savings balances also hit record highs.

The group said the housing market slowed in the second half of the year, but its mortgage business stayed strong. Gross mortgage lending rose by 13% to £1.6bn, and its assets grew by 15% to £6.1bn.

The society saw a strong return to traditional savings accounts in 2004, with savings balances rising by £468m to £4.1bn. Cost controls improved: its cost-asset ratio was 5p to 67p per £100 of assets, while its cost-income ratio was one of the lowest in the industry at 47p for every £1 of income.

Chief executive Ian Ward said: "We are very careful to invest in business activities that generate a significant contribution for the society whilst ensuring we do not incur unnecessary extra overheads." The record profits represented a "great achievement" for the business.