FINANCIAL RESULTS RELEASE - SKIPTON
GROUP
28
February 2024
Skipton Group profit up 12%
allowing record investment for our members and
communities
The Skipton Group (the 'Group')
which includes Skipton Building Society, Connells group - the UK's
largest estate agency; and other Group businesses, has again
performed strongly in its 171st year:
·
Group profit before tax (PBT) increased to £333.4m
with underlying Group PBT[1]
of £308.6m (2022: £297.7m).
·
Our Group financial performance has enabled
increased profit-reinvestment for members in 2023,
including:
- Launch of
our Track Record mortgage - the only available deposit-free
mortgage without the need for a guarantor; enabling those trapped
in expensive rents to realise their homeownership
aspirations;
- A highly
competitive member benefit regular saver product paying an interest
rate of up to 7.5% - with over 68,000 new accounts opened by
members, we expect to pay more than £8m in interest on
maturity;
- Members
benefitted by over £148m given through above market average savings
rates - we paid 0.65% above the market average to our
savers[2];
- Extension
of our free Home Energy Efficiency Assessment Report (EPC Plus)
offer - since launch, c.10,000 surveys have been conducted
providing over £700k of benefit to our members;
-
The launch of a free pension health check enabling
members to make more of their money now, and in the future, to have
the retirement they deserve - over 600 pension health checks were
booked in the year, since launch in August;
- Committed
to donating 1% of Group PBT to charity -
based on last year's profit, that's £2.9m of support for good
causes;
-
Ever-improving customer service - our
commitment to our members continues to be
recognised, being awarded Customer Contact
Association (CCA) Global Accreditation for Customer Experience;
and
-
Our products and services have been recognised
too, being voted Top Rated Lender in the Mortgage Finance Gazette
& Mortgage Solutions Rated for Service Awards
2023.
·
We have delivered against our strategic priorities
-
to Help More People Have a
Home:
o £6.7bn of mortgage advances, up 6.3% year-on-year;
additionally £30.9bn of lending has been generated by Connells
group for UK mortgage providers in 2023 (2022: £36.9bn);
o We
have supported c.40% more first-time buyers, providing specific
financing for 19,120 first-time buyers in the year; and
o Increased market share in mortgages - despite the UK mortgage
market being stagnant for the majority of the year, Group mortgage
balances increased to £28.6bn, representing growth in market share
of balances of c.13%[3].
to Make Money Work Harder:
o Our
minimum variable savings rate has increased from 1.75% to 3.25% at
the year end;
o These competitive savings rates resulted in balances growing
in the year by 15.4% to £26.0bn, compared to the UK savings market
where net savings grew by only
1.9%[4]; and
o We
continue to make financial advice easy and accessible by offering
free advice to our members - in 2023, we supported 6,000 customers
with financial advice (2022: 7,835), helping members with their
savings and investment goals.
to Make Membership Matter:
o Membership has grown by 8.1% to over 1.2 million, bringing the
benefit of membership to an ever-increasing number of
people;
o As a
mutual, we are only answerable to our members and customers and not
to shareholders; and
o Our
Transformation Programme is further upgrading our digital
capability which sits alongside our human touch and member centric
service; whilst as part of our continued focus on maintaining very
high service standards for our members, we have increased
headcount in customer facing areas
which has allowed us to increase contact
volumes.
·
Group financial performance is underpinned by our
strong asset quality, capitalisation, liquidity and funding
profiles and these firm, sustainable foundations have most notably
enabled us to deliver:
- Group
mortgage balances growth of 12.1%
- Group UK
residential mortgages in arrears by three months or more remains
low at only 0.23% of mortgage accounts at the end of December 2023
(2022: 0.17%), well below the industry average[5], an indication of lower financial risk for the
Group
- A
liquidity coverage ratio (LCR)[6] of 173% at December 2023 (2022: 175%) -
with liquidity levels having remained well above regulatory limits
throughout the year
- A strong
capital position - Common Equity Tier 1 (CET1) and leverage
ratios6 of 26.3% and 6.7%
(2022: 25.8% and 6.8%) respectively[7]
- Group net
interest margin increased to 1.53% (2022: 1.35%) reflecting the
rising interest rate environment which created opportunities to
generate higher net income which we are reinvesting to deliver
further benefits for members
- The
Society's PBT (combining the Home Financing and Money businesses)
increased to £283.7m (2022: £160.9m)
·
We have also continued to deliver on our core
values to support a better society today, for a better future
tomorrow; making Environmental, Social and Governance (ESG),
including climate resilience, central to our decision making; and
we are adapting our services in order to become more accessible and
inclusive - we have added British Sign Language (BSL)
interpretation to the disclosure videos in branch, whilst in June
we joined the Hidden Disabilities scheme.
Stuart Haire, Group Chief
Executive:
"It has been a transformative year for Skipton Building
Society. Following the refresh of our strategy we have established
a Group structure (as opposed to a building society plus
subsidiaries) which is aligned to our members' needs; namely,
financing their homes (Home Financing), making their money work
harder (Money) and helping them buy and sell homes (Estate Agency,
Connells group). We have also seen a greater involvement in our
strategy and execution from our Jade Software business in New
Zealand and ongoing strong performance from our International
(Skipton International) and Commercial Finance (Skipton Business
Finance) businesses.
Where appropriate we have developed new strategies for these
businesses and appointed new leadership, whilst refining our
operating model to support even greater accountability, performance
and agility. I believe these changes will enable us to deliver
better outcomes for our members.
Change like this is not always easy. However,
our achievements
only confirm why I wanted to join this business. I was drawn to our
organisation by the history of its brands and its strong purpose -
helping more people into homes, helping people save for life ahead
and supporting long-term financial well-being.
There is real
energy around the Group, and I am very proud to be a part of
it.
The Group structure gives us a greater opportunity to give
more to our members, where they need it most. It provides us with a
diversified range of capabilities and enhanced financial strength.
We have three compelling strategic priorities,
centred on
leveraging Skipton Group's unique business mix, in
order to help more people have a home, to make money work harder and
to make membership matter.
This year we have been braver, bolder and more innovative for
our members and customers, with our well-regarded Track Record
mortgage for rental prisoners (which is already helping hundreds of
people), and our income booster product (Joint Borrower, Sole
Proprietor) where friends and family can pool their finances to get
a mortgage and a home. For savings members, we have launched highly
competitive savings offers, including our member exclusive 7.5%
regular saver in June. We have also offered free advice and
free pension health checks for members, and a free EPC Plus survey
to help improve the energy efficiency of our members' homes. This
has been achieved while maintaining our award-winning customer
service, consistently ranking toward the top of cross industry
customer service league tables; all thanks to the skills, care and
empathy with which our customer facing colleagues engage our
members.
Through our focus on helping more people have a home and
making money work harder, we have significantly grown market share
in deposits and mortgages; whist maintaining our healthy share of
the Estate Agency market and further growing our invoice finance
and international mortgage businesses. Our lending now goes to more
first-time buyers than ever (one in three of all loans advanced)
and our savers are rewarded too, with our lowest rate on an instant
access account beating the market average by some considerable
distance. All this while further building out our capital and
funding positions and upgrading our risk management skills and
framework.
This has not come by chance. This is down to the hard work,
resilience and focus of colleagues, who I want to thank for the
incredible work they do all day, every day. It is also thanks to
our coverage and leadership position in the UK housing market;
together with our unique position in the market afforded by our
mutual ownership model, where we only answer to our members and
customers and not to shareholders.
Looking ahead, we will continue to step-up our support to
members and customers through challenging times.
Our ambition is
to make a positive impact in order to tackle the UK's housing
crisis by enabling more first-time buyers to realise their
homeownership aspirations - I believe the Skipton Group
has great potential to drive transformative change in the UK
housing market and financial services industry, leveraging our
collective Group capability. Our Group brand will give us an
elevated position to drive change, influence decision makers and a
platform to campaign on the issues that matter to our members, our
communities and wider society.
We
have an opportunity to add even more value through first-to-market
products and excellent customer service that responds to real and
changing societal needs. Our focus will continue on our three key
priorities as we drive further value for our members and customers.
We will develop new capability to support more people into
homeownership and improve the customer journey for buying and
selling homes, whilst continuing to grow our lettings business. We
will also continue to invest more to ensure our members receive
above-market interest rates for their savings and have access to
free advice to help them plan their financial
futures.
Our role in helping more people onto the property ladder,
enabling existing homeowners to improve energy efficiency, and
providing opportunities for people to save and plan for the future
is needed now more than ever".
Individual business performance
Home Financing
Charlotte Harrison, CEO - Home Financing said:
"We want to drive collaborative change across the Group to
tackle the key issues impacting our members and the UK housing
sector, to enable more first-time buyers to get on to the property
ladder than ever before".
In May 2023 we launched a new option
for aspiring first-time buyers - our Track Record mortgage enables
people trapped in rental cycles to realise their homeownership
aspirations through a deposit-free mortgage. The value of this
product has been clearly demonstrated, with applications totalling
£62.4m already received since its launch, and £29.7m of
completions. With the criteria now extended to also include tenants
that were previous homeowners, we're enabling even more renters to
access the property ladder.
During the year, we have protected
our mortgage variable rate customers from interest rate rises,
having the lowest Standard Variable Rate (SVR) and Mortgage
Variable Rate (MVR) amongst our peers at 6.50% and 6.79%
respectively (as at December 2023); passing on only 0.50% of the
1.75% rise in Bank of England base rate to our borrowers -
these steps are designed to recognise the
challenging economic times for our members.
We were a founding signatory to the
Mortgage Charter, which outlines the standards lenders have agreed
to uphold for customers affected by the increase in mortgage rates
and the elevated cost of living, albeit this is only being used by
a small proportion of our borrowing members. This is testament to
our strong up-front lending controls and proactive credit
management, whereby we closely monitor and manage mortgages that
have fallen into arrears, working with borrowers to find solutions
that are appropriate for their individual circumstances.
In the year, we were awarded Your
Mortgage - Best First Time Buyer Mortgage Lender and Which?
Recommended Mortgage Provider. Our
commitment to listening to our borrowers and brokers also continues
to be recognised, with Skipton being named the What Mortgage Awards
2023 - Best National Building Society for the 10th year
in a row.
The Home Financing business has
enhanced its focus on how we monitor our success to ensure we are
always providing outstanding experience to our members and
customers. This is reflected in the Home Financing business' strong
net customer satisfaction score of 93% (2022: 93%)[8]. Our service remained strong despite large
application volumes, with average time from application to offer
of just 9.0 days, whilst the average time taken to answer mortgage-related calls and webchats was 79
seconds.
Money
Andrew Bottomley, CEO - Money said: "We will ensure we are even
more relevant for our customers; that we fully understand their
needs and provide greater solutions in savings as well as long-term
investing, through our branches, on the phone or
online".
As part of our commitment to paying
a competitive savings rate, the Money business has passed on over
75% of the Bank of England base rate changes in the year to our
members, at an average of 1.33% of the 1.75% change in base rate in
2023.
Furthering our commitment, we
launched a highly competitive member benefit product in the form of
a regular saver that pays an interest rate of up to 7.5%, enabling
members to make the most of their hard-earned money.
We have achieved growth in the
number of financial advice customers up 0.9% to 47,126, with funds
under management of £4.3bn (2022: £3.9bn). Our savings balances
have grown strongly too, without
compromising on service - our Money business achieved a net
customer satisfaction rating of 86% (2022: 88%)8.
Average time taken to answer savings-related calls and webchats is 156 seconds, despite
increased call volumes seen over ISA season.
Reflecting
our continued efforts to service the needs of our members, we have
consistently ranked towards the top of cross industry customer
service league tables; as evidenced by Fairer Finance who awarded
our Money business' savings accounts Gold in their latest customer
experience ratings - awarded to providers
who 'perform the best in their customer experience ratings'. We
were also Moneyfacts Awards 2023: Winner - Best Building
Society Savings Provider; together with Moneyfacts Consumer Awards
2023: Highly commended (2nd place) - High Street
Savings Provider of the Year.
Estate Agency, Connells group
Richard Twigg, Interim CEO -
Connells group said: "Despite housing market
activity being the lowest since 2009, Connells group has maintained
its dominant position in the market. With a more positive outlook
in early 2024, with an uptick in activity driven by recent falls in
mortgage rates, Connells group, which continues to have a strong
balance sheet and substantial cash reserves, remains well equipped
to take advantage and succeed through whatever market conditions
prevail".
Our Estate Agency business, Connells
group, is focused on delivering for customers and clients
throughout the process of buying, selling and renting homes.
Through its network of brands and branches nationwide, Connells
group combines residential sales expertise with a range of consumer
and corporate services including land and new homes, mortgage
services, conveyancing and auctions. The Connells group also
supports customers to have a home through its lettings business and
is one of the largest providers of residential survey and valuation
services in the UK.
Consumer confidence in the housing
market weakened in the year amidst higher borrowing costs. As a
result, Connells group entered 2023 with a materially lower sales
pipeline. The tougher economic environment prevailed throughout
2023 further impacting upon Connells group results, with revenue in
the year down 7.7% to £950.9m (2022: £1,030.3m).
Nevertheless, Connells group
remained profitable and achieved a PBT of £13.8m (2022: £67.5m).
Earnings before interest, tax, depreciation and amortisation
(EBITDA)[9], a common
measure of estate agency performance, was £63.7m (2022:
£124.9m).
Consequently, Connells group has
maintained its market share, supporting one in ten individuals
looking to buy and sell homes in the UK, with the number of
properties that Connells group exchanged contracts on during the
year being 70,971 (2022: 87,395).
The mortgage services proposition
continues to perform well with the number of mortgages arranged by
the group decreasing by only 7%, despite the prevailing market
conditions. The Connells group lettings business manages properties
on behalf of landlords, with the number of properties under
management at December 2023 increasing to 125,666 (December 2022:
122,614).
Other business lines
Skipton International Limited (SIL)
Forming part of our Group, our
international business SIL (based in Guernsey) offers some of the
best offshore interest rates whilst being committed to providing
personal service - a winning combination when depositing money in
an offshore savings account. SIL offers Sterling and US Dollar
savings in fixed rate bonds, notice and easy access
accounts.
In addition, SIL carries out mortgage lending in the Channel Islands and
has a UK mortgage proposition specifically for UK
buy-to-let investors resident overseas and special purpose
vehicles. The offering is as simple and hassle-free as possible,
available by phone or video with a personal point of contact
throughout the process.
SIL were the Moneyfacts Awards 2023
winner for Offshore Account Provider of the Year, and were also
awarded the Platinum Trusted Service Provider Award by Feefo in the
year; whilst in 2023 they launched a new online portal which will
only help further improve customer experience too.
Performance continues to be strong,
with pre-tax profits of £47.3m (2022: £39.9m); this reflects the
benefits to income and margin from the rising interest rate
environment, whereby SIL's net interest margin has increased to
2.37% (2022: 2.20%), whilst the ratio of
administrative expenses to income remained stable at 19.9% (2022:
20.3%).
SIL's savings book grew 11.4% in the
year, increasing its funding base to £2.4bn. SIL also reported
growth in its mortgage book, which increased by 9.6% to £2.2bn.
The quality of SIL's mortgage book remains
good, with only four cases in arrears by three months or more
(2022: no cases).
Skipton Business Finance (SBF)
SBF, our
provider of debt factoring and invoice discounting to small and
medium-sized enterprises (SMEs), contributed PBT of £9.6m to the
Group in the year (2022: £7.3m).
Following removal of Covid-related
Government support schemes, and in light of UK inflationary
pressure that had built across the UK, SBF was able to help more
SMEs amidst increasing demand for working capital support, with a
total portfolio comprising 872 clients and total drawn funds of
£171.2m as at December 2023 (2022: 838 clients, with total drawn
funds of £150.6m).
The quality of SBF's lending during
these turbulent times continues to be excellent. Impairment as a
percentage of drawn funds remained low at 0.9% (2022:
0.8%).
Jade Software
Jade is a software solutions
provider based in New Zealand that specialises in digital,
artificial intelligence (AI) and large information technology (IT)
enterprise solutions, as well as being the provider of the Home
Financing and Money businesses' core database and software
development language. Jade generated a profit of £1.3m in the year
(2022: £0.6m).
Skipton Building Society
Results for the year ended 31 December 2023
Consolidated income statement
|
|
2023
|
2022
|
|
|
£m
|
£m
|
|
Interest receivable and similar
income:
|
|
|
|
Accounted for using the effective
interest rate method
|
1,746.4
|
806.7
|
|
Other
|
33.6
|
15.8
|
|
Total interest receivable and
similar income
|
1,780.0
|
822.5
|
|
Interest payable and similar
charges
|
(1,237.2)
|
(398.1)
|
|
Net
interest receivable
|
542.8
|
424.4
|
|
Fees and commissions
receivable
|
993.7
|
1,092.6
|
|
Fees and commissions
payable
|
(8.3)
|
(14.7)
|
|
Fair value gains on financial
instruments mandatorily held at FVTPL
|
23.5
|
1.3
|
|
Other income
|
2.9
|
4.0
|
|
Total income
|
1,554.6
|
1,507.6
|
|
Administrative expenses
|
(1,224.8)
|
(1,188.5)
|
|
Operating profit before impairment and
provisions
|
329.8
|
319.1
|
|
Impairment and provisions
|
3.6
|
(20.3)
|
|
Profit before tax
|
333.4
|
298.8
|
|
Tax expense
|
(78.8)
|
(67.8)
|
|
Profit for the year
|
254.6
|
231.0
|
|
|
|
|
|
Profit for the year attributable to:
|
|
|
|
Members of Skipton Building
Society
|
254.8
|
231.2
|
|
Non-controlling interests
|
(0.2)
|
(0.2)
|
|
|
254.6
|
231.0
|
Underlying Group PBT for 2023 was £308.6m (2022: £297.7m) as shown
below:
|
|
2023
|
2022
|
|
|
£m
|
£m
|
|
Total Group profit before
tax
|
333.4
|
298.8
|
|
Less profit on disposal of
subsidiary undertakings
|
-
|
(0.1)
|
|
(Less) / add back fair value (gains)
/ losses in relation to equity release portfolio
(note 1)
|
(11.0)
|
9.8
|
|
Less fair value gains on share
warrants and equity share investments (note 2)
|
(13.8)
|
(11.6)
|
|
Add back impairment of
goodwill
|
-
|
0.8
|
|
Underlying Group profit before tax
|
308.6
|
297.7
|
Notes
1.
The £11.0m gain (2022: £9.8m loss) is comprised of
fair value gains on the portfolio of £9.2m (2022: £132.3m losses),
and fair value gains of £1.8m (2022: £122.5m gains) on the
associated derivatives held to economically hedge these fair value
movements, as shown in the 'Fair value gains on financial
instruments mandatorily held at FVTPL' line in the Income
Statement.
2.
As shown in the 'Fair value gains on financial
instruments mandatorily held at FVTPL' line in the Income
Statement.
Skipton Building Society
Results for the year ended 31 December 2023
Consolidated statement of comprehensive
income
|
|
2023
|
2022
|
|
|
£m
|
£m
|
|
Profit for the year
|
254.6
|
231.0
|
|
Other comprehensive income:
|
|
|
|
Items that will not be reclassified to profit or
loss:
|
|
|
|
Remeasurement losses on defined
benefit obligations
|
(4.5)
|
(6.7)
|
|
Gains / (losses) on equity share
investments designated at FVOCI
|
0.2
|
(8.5)
|
|
Income tax on items that will not be
reclassified to profit or loss
|
1.1
|
0.4
|
|
|
(3.2)
|
(14.8)
|
|
Items that may be reclassified subsequently to profit or
loss:
|
|
|
|
Movement in cash flow hedging
reserve:
|
|
|
|
(Losses) / gains taken to
equity
|
(48.4)
|
47.8
|
|
Realised losses / (gains)
transferred to Income Statement
|
14.1
|
(12.8)
|
|
Movement in fair value reserve (debt
securities):
|
|
|
|
Gains / (losses) taken to
equity
|
1.7
|
(22.3)
|
|
Impairment loss allowance on debt
securities held at FVOCI
|
(0.1)
|
-
|
|
Movement in cost of hedging
reserve:
|
|
|
|
Gains taken to equity
|
0.8
|
3.8
|
|
Exchange differences on translation
of foreign operations
|
(0.3)
|
0.4
|
|
Income tax on items that may be
reclassified to profit or loss
|
9.2
|
(4.4)
|
|
|
(23.0)
|
12.5
|
|
Other comprehensive expense for the year, net of
tax
|
(26.2)
|
(2.3)
|
|
Total comprehensive income for the year
|
228.4
|
228.7
|
|
|
|
|
|
Total comprehensive income attributable to:
|
|
|
|
Members of Skipton Building
Society
|
228.6
|
228.9
|
|
Non-controlling interests
|
(0.2)
|
(0.2)
|
|
|
228.4
|
228.7
|
Skipton Building Society
Results for the year ended 31 December 2023
Consolidated statement of financial position
|
|
2023
|
2022
|
|
|
£m
|
£m
|
|
Assets
|
|
|
|
Cash in hand and balances with the
Bank of England
|
3,266.2
|
3,520.5
|
|
Loans and advances to credit
institutions
|
488.8
|
631.9
|
|
Debt securities
|
3,337.7
|
2,640.3
|
|
Derivative financial
instruments
|
1,000.8
|
1,355.1
|
|
Loans and advances to customers held
at amortised cost
|
28,161.4
|
24,452.3
|
|
Loans and advances to customers held
at FVTPL
|
0.9
|
1.0
|
|
Equity release portfolio held at
FVTPL
|
293.3
|
278.7
|
|
Current tax asset
|
0.9
|
18.3
|
|
Investments in joint
ventures
|
10.3
|
10.1
|
|
Property, plant and
equipment
|
74.5
|
71.8
|
|
Right-of-use assets
|
100.9
|
106.7
|
|
Deferred tax asset
|
20.9
|
13.1
|
|
Intangible assets
|
313.2
|
323.4
|
|
Other assets
|
152.1
|
148.1
|
|
Total assets
|
37,221.9
|
33,571.3
|
|
Liabilities
|
|
|
|
Shares
|
25,949.8
|
22,349.6
|
|
Amounts owed to credit
institutions
|
2,093.4
|
2,963.3
|
|
Amounts owed to other
customers
|
2,808.8
|
2,339.2
|
|
Debt securities in issue
|
2,414.7
|
2,591.6
|
|
Derivative financial
instruments
|
452.2
|
415.6
|
|
Current tax liability
|
2.4
|
1.5
|
|
Lease liabilities
|
103.0
|
113.0
|
|
Other liabilities
|
85.9
|
83.7
|
|
Accruals
|
97.5
|
93.1
|
|
Deferred income
|
10.4
|
9.9
|
|
Provisions for
liabilities
|
29.4
|
34.7
|
|
Retirement benefit
obligations
|
26.2
|
29.6
|
|
Subordinated liabilities
|
685.3
|
311.8
|
|
Subscribed capital
|
41.6
|
41.6
|
|
Total liabilities
|
34,800.6
|
31,378.2
|
|
|
|
|
|
Members' interests
|
|
|
|
General reserve
|
2,422.0
|
2,176.4
|
|
Fair value reserve
|
(9.5)
|
(16.9)
|
|
Cash flow hedging reserve
|
4.9
|
29.6
|
|
Cost of hedging reserve
|
(0.5)
|
(1.1)
|
|
Translation reserve
|
4.6
|
4.9
|
|
Attributable to members of Skipton Building
Society
|
2,421.5
|
2,192.9
|
|
Non-controlling interests
|
(0.2)
|
0.2
|
|
Total members' interests
|
2,421.3
|
2,193.1
|
|
Total members' interests and liabilities
|
37,221.9
|
33,571.3
|
Skipton Building Society
Results for the year ended 31 December 2023
Consolidated statement of cash flows
|
|
2023
|
2022
|
|
|
£m
|
£m
|
|
Cash flows from operating activities
|
|
|
|
Profit before tax
|
333.4
|
298.8
|
|
Adjustments for:
|
|
|
|
Impairment (gains) / losses on
financial instruments
|
(2.0)
|
18.1
|
|
Depreciation and
amortisation
|
74.2
|
76.8
|
|
Impairment of property, plant and
equipment, right-of-use assets and investment property
|
2.3
|
(0.5)
|
|
(Profit) / loss on disposal of
property, plant and equipment, investment property and intangible
assets
|
(0.2)
|
0.7
|
|
Fair value (gains) / losses on
certain financial instruments held at FVTPL
|
(23.3)
|
120.5
|
|
Interest on subordinated liabilities
and subscribed capital
|
27.1
|
11.8
|
|
Interest on lease
liabilities
|
2.3
|
2.1
|
|
Profit on disposal of subsidiary
undertakings
|
-
|
(0.1)
|
|
Other non-cash movements
|
(40.4)
|
5.8
|
|
|
373.4
|
534.0
|
|
Changes in operating assets and
liabilities:
|
|
|
|
Net movement in prepayments and
accrued income
|
(12.2)
|
(3.4)
|
|
Net movement in accruals and
deferred income
|
4.9
|
(4.9)
|
|
Net movement in provisions for
liabilities
|
(5.3)
|
(1.7)
|
|
Net movement in fair value of
derivatives
|
390.9
|
(1,003.7)
|
|
Net movement in fair value
adjustments for hedged risk
|
(444.1)
|
664.0
|
|
Fair value movements in debt
securities
|
(56.9)
|
93.8
|
|
Net movement in loans and advances
to customers
|
(3,085.1)
|
(2,223.8)
|
|
Net movement in shares
|
3,470.8
|
2,689.7
|
|
Net movement in amounts owed to
credit institutions and other customers
|
(400.2)
|
849.9
|
|
Net movement in debt securities in
issue
|
(198.4)
|
368.4
|
|
Net movement in loans and advances
to credit institutions
|
76.5
|
(115.9)
|
|
Net movement in other
assets
|
20.0
|
15.0
|
|
Net movement in other
liabilities
|
(2.6)
|
(22.7)
|
|
Income taxes paid
|
(58.3)
|
(67.9)
|
|
Net
cash flows from operating activities
|
73.4
|
1,770.8
|
Skipton Building Society
Results for the year ended 31 December 2023
Consolidated statement of cash flows
(continued)
|
|
2023
|
2022
|
|
|
£m
|
£m
|
|
Net
cash flows from operating activities
|
73.4
|
1,770.8
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
Purchase of debt
securities
|
(2,476.7)
|
(1,995.5)
|
|
Proceeds from maturities and
disposals of debt securities
|
1,828.5
|
1,447.2
|
|
Purchase of non-controlling
interests
|
(0.2)
|
-
|
|
Contingent consideration received in
respect of prior period disposals of subsidiary
undertakings
|
-
|
6.4
|
|
Other investing
activities
|
(26.5)
|
(18.1)
|
|
Net
cash flows from investing activities
|
(674.9)
|
(560.0)
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
Exercise of share options in
subsidiary management incentive scheme
|
(2.5)
|
(8.9)
|
|
Exercise of put options held by
non-controlling shareholders
|
(0.4)
|
(3.0)
|
|
Proceeds from issue of subordinated
liabilities
|
350.0
|
-
|
|
Interest paid on subordinated
liabilities and subscribed capital
|
(23.0)
|
(11.8)
|
|
Interest paid on lease
liabilities
|
(2.3)
|
(2.1)
|
|
Payment of lease
liabilities
|
(41.2)
|
(50.7)
|
|
Net
cash flows from financing activities
|
280.6
|
(76.5)
|
|
|
|
|
|
Net (decrease) / increase in cash
and cash equivalents
|
(320.9)
|
1,134.3
|
|
Cash and cash equivalents at 1
January
|
3,615.2
|
2,481.0
|
|
Increase in impairment loss
allowance on cash and cash equivalents
|
-
|
(0.1)
|
|
Cash and cash equivalents at end of year
|
3,294.3
|
3,615.2
|
Analysis of the cash
balances as shown within the Statement of Financial
Position:
|
|
2023
|
2022
|
|
|
£m
|
£m
|
|
Cash in hand and balances with the
Bank of England
|
3,266.2
|
3,520.5
|
|
Mandatory reserve deposit with the
Bank of England
|
(106.6)
|
(96.7)
|
|
|
3,159.6
|
3,423.8
|
|
Loans and advances to credit
institutions
|
134.7
|
191.4
|
|
Cash and cash equivalents at end of year
|
3,294.3
|
3,615.2
|
Skipton
Building Society, Principal Office: The Bailey Skipton, BD23
1DN
Skipton
Building Society is a member of the Building Societies Association.
Authorised by the Prudential Regulation Authority and regulated by
the Financial Conduct Authority and the Prudential Regulation
Authority, under registration number 153706, for accepting
deposits, advising on and arranging mortgages and providing
Restricted financial advice. Principal Office, The Bailey, Skipton,
North Yorkshire BD23 1DN.