...Low-Risk Profile: Yorkshire Building Society's (YBS) ratings reflect the society's conservative risk appetite, healthy asset quality, solid capitalisation, and sound funding and liquidity. They are, however, constrained by the society's limited franchise compared with larger UK banks and its concentration on UK mortgage assets. Healthy Asset Quality: YBS's asset quality has improved and now compares well with its UK peers. Residential mortgage loans are performing well, while the commercial loan book remains relatively small (end-2015: 2% of total loans), and is granular and well-diversified across the UK. Legacy commercial real estate (CRE) and specialist loan exposures are negligible. Conservative Risk Appetite: The society focuses on low-risk prime residential mortgage lending. It has expressed a greater appetite than some of its peers for higher loan/value (LTV) mortgages for first-time buyers, but this represents a small proportion of the loan book and there are well-defined risk policy...
