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Leeds Building Society reported lower annual profit as the value of its mortgage assets were hurt by international accounting rules.
Pre-tax profit fell to £88.0m in 2019 from £116.9m on-year, with the company blaming the decline on a charge under international accounting rules, which were adopted in 2018.
'Under International Financial Reporting Standards (IFRS), we have booked a fair value measurement reduction of £19.7m, which includes the effect of market rate volatility on both our legacy equity release portfolio and other mortgage assets,' the company said.
Leeds Building Society had assets of £20.8bn at 31 December 2019, up from £19.4bn on-on-year as savings balances increased by 4%, to £14.5bn.
'Prudent use of our profits has bolstered the Society's established financial security and strong capital position, with CET1 and total capital ratios of 33.6% and 41.0% respectively,' it added.
At 8:10am: (LON:LBS) Leeds Building Society 13 38 share price was 0p at 221p