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Skipton Bldg.Soc. (94IG)

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Tuesday 25 July, 2000

Skipton Bldg.Soc.

Interim Results

Skipton Building Society
25 July 2000

                                       
                SKIPTON ANNOUNCES RESULTS FOR DYNAMIC HALF YEAR

Skipton Building Society is pleased to announce its results for the half year
ending 30 June 2000, which reflect an intense and exciting period of activity
for the UK's 7th largest building society.  Performance for the past 6 months
has been dominated by 2 significant events - an overwhelming vote in support
of the Board at the Society's AGM and the sale of its share dealing arm,
Dealwise Limited.

At its Annual General Meeting in April, Skipton saw an unprecedented turnout
of eligible voters (37 per cent.) with an overwhelming majority voting in
support of the Board and the re-election of Chief Executive, John Goodfellow
and other Directors.  Members also recognised the Board's mandate and
responsibility to consider, from time to time, the Society's mutual status. 
Skipton will conduct its strategic review for 2000 during this quarter and
announce the results upon completion.

In the period under review, the Society has achieved record profits,
substantially enhanced by the sale of Dealwise.  This deal represents an
outstanding return for the Society and its members over a short period.

In a ground-breaking move, the Society has subsequently announced that it has
returned nearly £50m of this profit, by giving almost 300,000 of its loyal,
long-term members a unique interest credit.  For those who have maintained
membership since 30 September 1996 - the time of the acquisition of Dealwise -
a loyalty interest credit of 4 per cent. for savers and 0.4 per cent. for
borrowers has been awarded (both subject to an overall individual maximum of
£500).  Those who are both borrowers and investors have received up to £1000.
All qualifying children received the loyalty interest credit whilst directors
were specifically excluded.  This reward to members comes in addition to a
further £50m or so which will be passed back to members through the interest
rate margin during 2000, when compared to the margin of a typical mortgage bank.

The disposal does not constitute a change in policy for the Society and it
will continue to pro-actively seek further acquisitions which generate a
greater return on its capital, whilst increasing the overall value of the
Group and adding bespoke management expertise.  A number of exciting
initiatives and new ventures are currently in various stages of development.

On 9 May 2000, Skipton announced the acquisition of a majority shareholding in
the Internet and I.T. solutions provider, CAST Systems Limited ('CAST' stands
for Computer Aided Sales Technology).  Focussing on the banking, finance and
insurance sectors, CAST's expertise lies in the expeditious design and
delivery of bespoke, web-based e-commerce solutions.

Skipton has also just announced its latest acquisition - a majority
shareholding in Pink Home Loans - purchased for an initial £2.75m.  Pink's
mortgage 'packaging' business involves designing, obtaining and collating new
mortgage applications on behalf of intermediaries prior to onward transmission
to its panel of 17 lenders.  It successfully places over 4,500 loans each
year, totalling in excess of £300m.

On 1 January this year, Skipton began calculating interest on a daily basis
for the whole of its mortgage book, becoming the first ever bank or building
society to apply this flexibility.  This initiative was designed to benefit
not only new customers but also ensure that existing customers were rewarded
for their loyalty.

As a consequence of events during the first half of the year, Group profit
before tax and minority interests amounted to £24.8m compared to £23.1m for
the same period in 1999.  Group assets increased year on year by 10.31 per
cent. and now total £5.24bn.  As indicated, the Group interest rate margin has
continued to fall, down to 1.25 per cent. from 1.31 per cent. at 31 December
1999 and this will, once again, prove to be one of the lowest of any building
society.

These results augur well for the second half of the year.

Chief Executive and Director, John Goodfellow commented, 'I believe that even
allowing for the two exceptional events, the underlying results demonstrate an
extremely strong performance from the Society and its subsidiaries.  Each
company has a developing business plan, including innovative e-commerce
strategies, designed to generate additional profits.  Skipton's
entrepreneurial philosophy offers its members something which no other
building society does - a share in the commercial success and earnings
potential of its subsidiary companies.  This approach represents the modern
face of mutuality and underpins the many benefits available to members of such
a progressive building society.  This is a unique programme of superior gains
without shareholder pains!'

Consolidated Income & Expenditure Accounts

                                 Unaudited            Unaudited   Audited
                               6 months to             6 months        12
                                   30/6/00                   to    months
                                                        30/6/99        to
                                                                 31/12/99
                       £'000s       £'000s    £'000s     £'000s    £'000s
                     Ordinary  Exceptional     Total                     
                                                                         
Interest Receivable   160,336                160,336    136,053   272,487
Interest Receivable                                                      
(Discounted                                                              
operations)             1,359                  1,359        872     2,212
                      ---------------------------------------------------
Total Interest                                                           
Receivable            161,695            0   161,695    136,925   274,699
                                                                         
Interest Payable     (128,876)              (128,876)  (106,816) (211,937)
Interest Payable                                                
(Discontinued                                                   
Operations)              (509)                  (509)      (191)     (544)
                      ---------------------------------------------------
Total Interest                                                           
Payable              (129,385)           0  (129,385)  (107,007) (212,481)
                                                                         
Additional Interest                                                      
Credit                      0      (49,939)  (49,939)
                      ---------------------------------------------------
Net Interest                                                             
Receivable             32,310      (49,939)  (17,629)    29,918    62,218
                                                                         
Fees and                                                                 
Commissions                                                              
Receivable             44,505                 44,505     35,746    87,397
Fees and                                                                 
Commissions                                                              
Receivable                                                               
(Discontinued          12,709                 12,709     10,674    25,223
Operations)
                      ---------------------------------------------------
Total Fees and                                                           
Commissions                                                              
Receivable             57,214            0    57,214     46,420   112,620
                                                                         
Fees and                                                                 
Commissions Payable    (2,313)                (2,313)      (795)   (4,195)
                                                                         
Other Operating                                                          
Income                    842                    842      2,495     1,026
                      ---------------------------------------------------
Total Operating                                                          
Income                 88,053      (49,939)   38,114     78,038   171,669
                                                                         
Administrative                                                           
Expenses              (50,297)               (50,297)   (40,663)  (91,102)
Administrative                                                           
Expenses                                                                 
(Discontinued                                                            
Operations)           (13,660)               (13,660)    (8,243)  (20,164)
                      ---------------------------------------------------
Total                                                                    
Administrative                                                           
Expenses              (63,957)           0   (63,957)   (48,906) (111,266)
                                                                         
Depreciation and                                                         
Amortisation           (4,102)                (4,102)    (3,474)   (6,666)
Depreciation and                                                         
Amortisation                                                             
(Discontinued                                                            
Operations)              (357)                  (357)      (314)     (720)
                      ---------------------------------------------------
Total Depreciation                                                       
and Amortisation       (4,459)           0    (4,459)    (3,788)   (7,386)
                                                                         
Total Operating                                                          
Expenses              (68,416)           0   (68,416)   (52,694) (118,652)
                                                                         
Provisions                418                    418     (2,241)   (2,985)
                                                                         
Profit on Disposal                                                       
of Discontinued                                                          
Operations                  0       54,644    54,644          -         -
                                                                         
Profit Before                                                            
Taxation               20,513        4,705    25,218     20,305    44,025
Profit Before                                                            
Taxation                                                                 
(Discontinued                                                            
Operations)              (458)                  (458)     2,798     6,007
                      ---------------------------------------------------
Total Profit Before                                                      
Taxation               20,055        4,705    24,760     23,103    50,032
                                                                         
Taxation               (5,937)      (1,411)   (7,348)    (7,360)  (15,407)
                      ---------------------------------------------------
Profit After                                                             
Taxation               14,118        3,294    17,412     15,743    34,625
Minority Interests         (2)                    (2)      (371)     (850)
                      ---------------------------------------------------
Retained Profit        14,116        3,294    17,410     15,372    33,775
                      ===================================================

Note 1 - The above results have been prepared on the basis of the accounting
policies disclosed in the Society's 1999 Annual Report and Accounts.

Note 2 - Discontinued Operations relate to the results of Dealwise Limited
which was sold on 19th May 2000.

SKIPTON BUILDING SOCIETY

UNAUDITED RESULTS FOR THE HALF YEAR TO 30 JUNE 2000

Consolidated Balance Sheets

                                                                     
                                  Unaudited    Unaudited      Audited
                                   6 months     6 months    12 months
                                 to 30/6/00           to           to
                                                 30/6/99     31/12/99
                                                                     
                                     £'000s       £'000s       £'000s
ASSETS                                                               
                                                                     
Liquid Assets                     1,031,853      921,811      967,281
Loans and Advances to Customers   4,067,404    3,527,853    3,786,556
Tangible Fixed Assets                67,322       62,021       68,348
Intangible Fixed Assets              18,417       11,866       21,519
Prepayments, Accrued Income                                          
and Other Assets                     56,940      228,374      295,443
                                                                     
Total Assets                      5,241,936    4,751,925    5,139,147
                                                                     
                                                                     
LIABILITIES                                                          
                                                                     
Shares                            3,210,107    2,849,380    2,930,331
Deposits and Debt Securities      1,643,435    1,334,359    1,591,711
Other Liabilities, Accruals and      67,218      272,152      305,922
Provisions
Subordinated Liabilities             39,000       48,000       46,000
Subscribed Capital                   25,000       25,000       25,000
Minority Interests                    1,264        2,935        1,681
Reserves                            255,912      220,099      238,502
                                                                     
Total Liabilities                 5,241,936    4,751,925    5,139,147
                                                                     
                                                                     

                                


                                                                                
                                                                                
                         

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