Skipton Group 2025: Record First-Time Buyer Support and a Resilient Set of Results
Skipton Group has delivered a robust 2025, balancing purpose with profit in a choppy housing market. Group profit before tax (PBT) came in at £275.2m (2024: £318.6m), with underlying PBT at £294.9m (2024: £302.3m). Underlying strips out one-offs like fair value movements and the buy-back charge on Permanent Interest-Bearing Shares (PIBS), giving a cleaner read on trading.
The headline that matters most: Skipton supported over 26,000 first-time buyers, making up 50% of new mortgage lending (2024: 44%). That accelerated its first-time buyer market share to 4.0% from 3.8%. In a “stop-start” market, that is meaningful momentum.
Key numbers at a glance
| Metric | 2025 | 2024 | Why it matters |
|---|---|---|---|
| Group PBT | £275.2m | £318.6m | Strong, despite a one-off PIBS charge and higher costs |
| Underlying Group PBT | £294.9m | £302.3m | Shows core performance is broadly stable |
| Net interest margin (NIM) | 1.29% | 1.28% | Margin edged higher despite mortgage competition |
| Group mortgage balances | £33.3bn | £30.9bn | 7.9% growth; market share in first-time buyers up to 4.0% |
| Arrears (3+ months) | 0.30% | 0.29% | Well below the industry average of 0.78% |
| Connells income | £1,177m | £1,069m | Estate agency recovery supported Group earnings |
| Connells underlying PBT | £56.3m | £54.3m | Improvement on rising transactions |
| SIL PBT | £12.1m | £31.0m | Lower as the business reinvests and tightens controls |
| Funds under management | £5.3bn | £4.7bn | Advice and wealth arm growing |
| Membership | Over 1.32 million | 1.27 million | 4.0% growth |
| Above-market rate to savers | +0.68% | +0.74% | £196m of extra interest returned to members |
| Liquidity coverage ratio (LCR) | 178% | 193% | Still strong after repaying TFSME |
| CET1 / Leverage ratio | 28.2% / 6.7% | 28.7% / 6.6% | Capital remains very robust |
First-time buyers and mortgages: where Skipton is winning share
Helping people into homes is core to Skipton’s mutual purpose, and the numbers back it up. Over 26,000 first-time buyers were supported in 2025, taking first-time buyers to 50% of new lending – a target originally set for 2028, hit three years early. Group mortgage balances rose 7.9% to £33.3bn, well ahead of a pretty sluggish market.
Arrears of 0.30% remain far below the industry’s 0.78%, a sign of prudent underwriting and resilient borrowers. That combination of growth plus good credit quality is exactly what you want to see in a lender navigating a competitive pricing environment.
Connells estate agency: a quiet hero in the P&L
Connells, Skipton’s property services arm, continued to be a ballast. Income grew to £1,177m (2024: £1,069m) and underlying PBT improved to £56.3m (2024: £54.3m). Exchanges rose to 86,000 (2024: 79,000), and the lettings book edged up to over 128,000 properties under management.
With buyers pulling forward completions ahead of March stamp duty threshold changes, early-year activity helped. In short, Connells’ recovery cushioned some of the interest margin and cost headwinds elsewhere in the Group.
Savings franchise and advice: delivering member value
Skipton’s savings book passed the £30bn milestone in the Society for the first time (exact figure not disclosed). The Group paid savers an average 0.68% above the market, returning £196m of extra interest to members. That is not cheap to fund, but it is on-brand for a mutual – and it’s driving loyalty.
The Money business is scaling advice, delivering over 64,000 free advice conversations – up 63% year-on-year. Funds under management rose to £5.3bn (2024: £4.7bn), and member satisfaction held at 90% with borrower satisfaction at 92%.
Profit quality, one-offs and costs: what changed year-on-year
PBT fell to £275.2m, but the underlying picture is steadier at £294.9m. The big swing factors were a £27.9m one-off charge from the buy-back of PIBS and higher operating costs. PIBS are legacy building society capital instruments; buying them back typically incurs an accounting charge now but can simplify and strengthen the capital structure over time.
Net interest margin nudged up to 1.29% (2024: 1.28%), helped by favourable funding costs, partially offset by sharper mortgage competition. Administrative expenses rose to £1,423.4m (2024: £1,312.3m) as the Group invested in people, brand and technology, and impairments moved to a charge of £12.2m from a £11.7m release last year – both consistent with a tougher macro backdrop.
Balance sheet strength: liquidity, capital and funding mix
Liquidity remained strong with an LCR of 178% (2024: 193%), even after the Society fully repaid Bank of England TFSME funding. Capital positions remain high at 28.2% CET1 and a 6.7% leverage ratio (2024: 28.7% and 6.6%).
On the liability side, “Shares” – predominantly member savings – rose to £30,526.3m. Subordinated liabilities reduced to £356.0m (2024: £690.2m) and subscribed capital to £15.2m (2024: £41.6m), reflecting capital structure actions including the PIBS buy-back. Debt securities in issue increased to £3,361.9m, and cash balances declined as the funding mix shifted – all within the context of continued balance sheet growth to £40,744.2m (2024: £39,015.3m).
Diversification in action: SIL, SBF and Jade
Skipton International (SIL) reported PBT of £12.1m (2024: £31.0m), as it transitioned its business and beefed up controls. The profit dip reflects higher salaries and lower interest income from external market factors – management flags this as a short-term impact of the change programme.
Skipton Business Finance delivered an 8% profit increase, and Jade – the Group’s AI and software arm – acquired Contec Group International Limited, expected to boost Jade’s annual revenue by up to 25%. Together, these non-core businesses contribute profit and capability that Skipton can reinvest into the Society.
Digital progress and industry impact: faster journeys, fewer fall-throughs
Digital adoption is moving: Skipton’s new App was rolled out to all borrowers in H2, with 57% of downloaders becoming regular users; full deployment across the member base lands in 2026. The Group is also using automation and AI tools internally to improve efficiency and service.
Notably, Connells’ National Property Transaction Network (through LMS) cut the time from Sold Subject to Contract to exchange by 35% and reduced cancellations by 43% in pilot. Scaling that to a whole-of-market solution could materially improve the UK moving experience – and potentially lift conversion and fee income across the chain.
Why this update matters
- Purpose with proof: Hitting 50% first-time buyer mix three years early is a genuine differentiator and underpins future growth.
- Resilient profitability: Underlying PBT barely moved year-on-year despite a tougher rate backdrop, higher impairments and investment spend.
- Quality of book: Arrears at 0.30% remain far below industry, pointing to strong asset quality.
- Balance sheet strength: High capital and solid liquidity provide room to keep investing and supporting members.
On the flip side: administrative costs are running higher, SIL profits are down during its transition, and liquidity is lower post-TFSME repayment (still strong, but a trend to watch). Mortgage pricing remains competitive, so sustaining NIM at 1.29% is no lay-up.
What to watch in 2026
- First-time buyer flow and market share: can Skipton hold the 50% mix and 4.0% share as rates evolve?
- Net interest margin resilience: funding costs versus competitive mortgage pricing.
- Cost discipline: trajectory of administrative expenses after a year of heavy investment.
- SIL profit recovery: evidence that the transition phase rolls off and earnings normalise.
- Scaling the NPTN: whether industry collaboration converts pilot gains into broader, recurring benefits.
- Jade’s acquisition uplift: delivery of the “up to 25%” revenue boost and cross-Group tech leverage.
Josh’s take
This is a solid set of mutual-friendly numbers. Skipton grew mortgages, deepened support for first-time buyers, kept arrears low, and leaned on Connells to smooth earnings – all while investing in technology and advice. The P&L took a one-off hit from PIBS and faced higher costs, but underlying profits are steady and capital is strong.
For members, the above-market savings rate and expanding advice footprint are clear wins. For investors tracking the sector, Skipton’s diversified model – mortgages, estate agency, savings, offshore lending, SME finance and software – continues to earn its keep. Execution in 2026 will be about holding margin, normalising SIL, and scaling the digital and transaction-efficiency gains already in train.
