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Business & Economy

Newcastle Building Society hails ‘year of achievement’ after securing record profit

A mutual says it has “delivered a strong performance in a challenging environment” after securing record profit amid greater demand for mortgage support.

Newcastle Building Society saw pre-tax profit rise to a new high of £29.1 million in 2021, a huge leap from the £1.4 million it booked in 2020.

Furthermore, operating profit before impairments and provisions increased to £28.5 million in 2021, which was nearly double the figure recorded in 2020.

And, with the UK housing market showing a continued upward trajectory, the mutual saw gross mortgage lending increase to £861 million, up from £645 million in 2020.

It welcomed 5300 new mortgage customers during 2021, thanks in part to its provision of mortgages under ‘Deposit Unlock’, an insurance-backed collaboration with the Home Builders Federation that helps small depositors own a new-build home, and its place on the Government’s First Homes scheme.

Andrew Haigh, chief executive, said: “I’m proud that despite the many challenges, 2021 was a year of achievement for Newcastle Building Society.

“We have delivered a strong set of results characterised by a spirit of creativity, agility and commitment.

“But the driving force behind these results is our purpose-led approach, which we bring to life through our support for communities, the innovative products we offer, our investment in maintaining our presence on our high streets and our passion for delivering high standards service for our customers.”

He added the mutual achieved a customer satisfaction score of 95 per cent, which matched the previous year’s all-time high, and increased its Net Promoter Score.

It also re-commenced a multi-million-pound branch investment programme, which saw a site in West Denton move to a new location and a Bishop Auckland base undergo refurbishment.

During the year, the mutual contributed more than £750,000 to local communities, helping to positively impact in excess of 21,000 people in the region.

Andrew added: “While we all remain hopeful that during 2022 we will begin to see the COVID-19 pandemic reduce its impact on our day-to-day lives..

“It is clear that our customers and our communities will face many new challenges in the year ahead.

“However, the resolve and determination of our colleague team, along with our investment in the Society’s capabilities and infrastructure, will ensure we can continue to be there for our members in the ways and places they need us to be.”