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Business & Economy

Newcastle Building Society buoyed as record mortgage lending and savings helps profits

Newcastle Building Society has seen profits rise after record mortgage lending complemented the arrival of thousands of new customers.

The mutual says pre-tax profit was up 18 per cent to £8.2 million in the six months to June 30, compared to £6.9 million for the first half of 2018.

Operating profit before impairment and provisions increased to £8.5 million from £7.2 million.

The society was helped by record gross mortgage lending of £380 million, which was an increase of 65 per cent on the first half of 2018. Furthermore, net core residential lending of £220 million was £60 million higher than that delivered across the whole of 2018.

Additionally, the business grew its customer base by more than 25,000, with members depositing record levels of savings.

The strong results come as the society continues with its commitment to strengthening its presence on the region’s high streets and in the area’s community hubs.

An announcement earlier this year to open a new branch in Barnard Castle, County Durham, was followed by news it will create community branches in Wooler, Northumberland, and Hawes, North Yorkshire.

Alongside its branch expansion, a multi-million-pound investment programme is continuing to refurbish existing bases into modern, open-plan environments.

Chief executive Andrew Haigh (pictured left), said: “We continue to make excellent progress in the face of very strong competition in the mortgage and savings market.

“Investing in branches and local high streets, delivering an outstanding customer experience and enabling our colleagues to realise their potential remains at the heart of our strategy and will continue to ensure we make a positive contribution to our members and the communities in which we operate.”