Leeds Building Society, which has announced record profits, says it is seeing the number of people struggling to repay their mortgages fall.

However the impact of the recession meant losses from struggling borrowers and provisions for future predicted losses had risen from £32.1 million in 2008 to £52.5 million for 2009. Overall. the UK’s sixth largest building society, announced strong results for 2009.

The operating profit before impairment losses and provisions increased 17 per cent to a record £80.1 million, against £68.6 million in 2008. Pre-tax profits also increased from £20.4 million to £31.7 million.

The Society, which attracted 71,000 new members taking membership to 680,000, increased savings balances by £225 million to a record level of £6.8 billion and boosted capital and reserves to a record level of £543 million.

Chief executive Ian Ward said: “Leeds Building Society achieved a good set of financial results for its members. Our successful, sustainable business model has delivered record operating profit and an increase in pre-tax profit, strengthening further our capital and reserves.”