Leeds Building Society has announced a healthy profit for the first six months of 2010, allowing it to write down nearly all its commercial property exposure.
A large bump in profits has helped one building society to write down its commercial property exposure.
Leeds Building Society (LBS) has announced pre-tax profits of £18 million for the first six months of 2010, according to the Daily Telegraph.
This growth has seen the lender write down nearly all its exposure to the commercial property market, with provisions reaching £13.6 million against impaired loans in central and south-east London.
As a result, LBS is in a position to reach its target of £1 billion worth of private and
commercial mortgage lending by the end of 2010.
"Our business model remains robust and successful as we continue to focus on efficiency, a prudent approach to lending, maintaining very strong levels of capital and high credit ratings," said Ian Ward, chief executive of LBS.
A new report from Savills recently claimed that activity in the commercial mortgage and development sector has turned negative for the first time in over a year.
Posted by Allan Flowers
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