Bradford-based Yorkshire Building Society has entered its 150th year on a high note after posting record results for 2013 and making a strong start to the current year.

The UK’s second largest building society achieved a record pre-tax profit £199.3 million – a 26 per cent increase on the previous year’s £137.2 million.

Growth was mainly due to a surge in mortgage lending, with gross lending rising by 48 per cent from £4.6 billion to £6.8 billion, with net lending - advances less repayments- soaring by 22 per cent from £612 million to £2 billion.

The YBS group – which includes the Barnsley, Chelsea and Norwich & Peterborough societies – reaped benefits from its range of 95 per cent loan to value mortgages aimed at first time buyers which it offers outside the Government’s Help to Buy scheme. First time buyers account for more than a third of YBS borrowers.

The Society, which relocated 800 staff a new office in Leeds during the year, confirmed that major refurbishment of its principle office on Rooley Lane, Bradford, was well under way.

YBS recruited 222 more staff in 2013 to take the total workforce to 4,333 Group chief executive Chris Pilling said: “I am delighted to present an outstanding set of financial results for the Group and am very proud of our achievements in 2013.

“It is 150 years since the building society from which the Yorkshire traces its roots was established and our financial performance and prudent approach in 2013 demonstrates we are still delivering on the promise of giving customers a trustworthy alternative to the banks.

“As well as providing competitive mortgages, we also worked hard to offer our members a range of strong savings accounts at a time when interest rates remain at a historic low.

“Our capital and liquidity positions remain very strong and our overall financial performance puts us in an excellent position to maintain our growth.”

Skipton Building Society also unveiled a much-improved performance in 2013 with pre-tax profits growing by £67.1 million to £102.5 million.

The core mortgages and savings division rebounded with pre-tax profits rising by £45.9 million from just £4.5 million in 2012 to £50.4 million.

The Connells estate agency business raised profits by 41 per cent to £50.2million from £35.6 million a year earlier with a 23 per cent rise in house sales.

Mortgage and savings balances rose by 9.2 per cent and 8.4 per cent respectively and Skipton expanded its customer base by 21,000 to more than 763,000. Group chief executive David Cutter said: “We continue to balance improving the financial strength of the group with prioritising the needs of a growing number of members.”