Yorkshire Building Society is planning to double mortgage lending this year and has started recruiting staff to handle the extra business.

Its boss says the merger with the Chelsea will make YBS a strong alternative to the banks and also increase employment opportunities in Bradford.

Iain Cornish, chief executive of the Bradford-based mutual, confirmed the lending move whilst unveiling the Society’s results for 2009.

A strong performance in the second half enabled YBS to remain resilient in a challenging market.

Mr Cornish said the Yorkshire had lived up to the meaning of mutuality by looking after its members rather than chasing profits.

“We’re not here to make a lot of money. Our priority is the interests of our members and we have focused on helping them in a difficult climate,” he said.

“We reduced our net interest margin as a result of protecting savers from the full impact of the base rate cuts whilst at the same time continuing to offer competitive mortgage products to our existing members.”

This resulted in Yorkshire savers receiving an estimated £85 million in extra interest. Mr Cornish said nearly nine out of ten of the Society’s variable rate savings accounts paid interest above base rate compared with an average of 40 per cent of similar accounts offered by banks.

YBS opened 250,000 new savings accounts and increased savings balances to £13.8 million and overall attracted more than 140,000 new members, taking total membership to over 2.1 million. The decision to restrict mortgage lending meant the Society’s assets fell slightly to £22.7 billion.

Group operating profit before provisions rose by 11 per cent to £48.7 million and core operating profits after provisions rose from £1 million at the half -year to £7.7 million.

Mr Cornish said: “I am pleased to report that the Yorkshire has demonstrated continued resilience throughout 2009 and has maintained a strong underlying performance.

“Throughout the year our actions have been driven by our focus to provide financial security and long-term value to our members. “This has been demonstrated by a number of actions we have taken. We have strengthened our capital position and continue to hold high levels of liquid assets.”