Newcastle Building Society ‘proud’ of progress amid ‘volatile’ year

A mutual has hailed its resilience against market turbulence after booking a robust financial performance.

Newcastle Building Society matched record gross mortgage lending figures and increased underlying operating profit in 2023, despite “wider economic uncertainty and market volatility”.

And bosses say it is primed to maintain its momentum, with its branch network – which extends from Alnwick to Hawes, in North Yorkshire – continuing to offer valuable face-to-face support while banks roll out widescale closures.

According to its results, the mutual saw operating profit before impairments and provisions hit £31.4 million – the same figure as 2022 – with underlying operating profit up from £26.7 million to £32.8 million.

Gross mortgage lending stood at £1.1 billion, consistent with record 2022 levels, while group pre-tax profit dropped from £32.6 million to £29.1 million.

Net core residential lending stood at £575 million, a fall from £586 million.

Speaking of its performance across the year, which included completion of a Manchester Building Society merger, Andrew Haigh, chief executive [pictured, below], said: “I’m proud we have remained true to our purpose of connecting our communities with a better financial future while delivering another set of strong results.

“My hope is members recognise the value that comes with being part of our mutual organisation.”

He added: “When announcing closures, banks regularly cite the cost of running a branch network and dwindling usage.

“We reject this premise.

“While online provision grows and has an essential role to play in a range of ways customers choose to access their providers, our members are unequivocal in their desire for face-to-face support.

“By putting members’ interests first, and taking a more creative approach to the future of branches, we can continue to offer the level of service, reassurance and convenience that is only available by speaking to a friendly face.”