Yorkshire and Chelsea building societies see £40m losses

By Philip Aldrick, Banking Editor Published: 9:16PM GMT twenty-five February 2010

Yorkshire and the stricken not as big rival, Chelsea, saw waste expand as bad debts at both lenders" doubled.

Chelsea was hobbled by �41m of debt rascal last year, that followed a �44.3m sustenance opposite the Icelandic banks in 2008. It posted a �27.1m loss prior to taxation for 2009, but pronounced trade stabilised in the second half, when waste were only �800,000.

Chelsea Building Society strike by �41m debt rascal Moodys slashed mutuals ratings in mass hillside Crisis-hit Dunfermline Building Society to be sole Britannia and Co-op partnership to emanate super-mutual Sawrij served an additional dogs breakfast in Spain

Yorkshire was strike by a large enlarge in debt bad debts, that rose from �25m to �59m, pulling it to a �12.5m loss prior to tax. However, the waste were incurred in the initial half. The multitude done a �10m distinction in the last 6 months of the year.

The societies are approaching to combine rigourously on Apr 1, formulating a lender with resources of we estimate �35bn and 178 branches.

Yorkshire arch senior manager Iain Cornish said: "We are saying immature shoots in the housing and debt markets and are really confident about the destiny prospects of the group. Our agenda, by the merger, is to yield a constrained pick to the banks."

Both lenders are withdrawing credit from the debt marketplace as they, in usual with all societies, onslaught with funding. Yorkshire withdrew �1.3bn from households whilst Chelsea marked down lending by �773m. Yorkshire did conduct to capture �110m of additional savings, bucking the direction in the sector, that has lost �7bn of patron deposits in 2009.

Despite the losses, Yorkshire"s core collateral remained 12.2pc. Chelsea has a 9.6pc collateral ratio.