Member Article

Pretax profits more than double to £3.5m for Newcastle Building Society

Newcastle Building Society has revealed a strong set of financials for the first half of the year.

Announcing a pretax profit of £3.5m, more than double the £1.5m figure it recorded over the same period in 2015, the firm also showed healthy lending volumes with an increase in the value of its gross residential lending, which rose from £148m to £255m.

Andrew Haigh, chief executive at the Society was particularly pleased with the profitable results after the firm’s centre investment commitments.

At the beginning of the year the company committed to creating 100 new jobs during 2016, and so far more than 50 positions have already been filled in its mortgage, IT, HR, risk and customer service departments.

The Society is currently implementing a £10m programme of investment in the way it delivers its service to customers with improvements to its branch network, telephone and digital offering, and operational infrastructure.

A new signature branch in Gateshead’s Trinity Square development opened this month, which followed the opening of a newly-refurbished North Shields branch in January. and two financial advice centres in Newcastle earlier in the spring, one incorporated in a new flagship branch at the Society’s head office.

Mr Haigh said: “I am particularly pleased that we have been able to increase profitability at a time when we are making significant investment into the business with new financial advice centers, our reinvigorated branch refurbishment programme, developing our people, enhancing the resilience of our systems and not least, focusing on the provision of first class service to our customers.

“We will continue to invest in the business to develop our service and products for members, and we will be focusing very closely on delivering our investment programme and supporting our customers and members through these changing and uncertain times.”

He continued: “We are a straightforward building society from the North East that puts our customers at the heart of our business, this is what we have been doing for over 150 years and what we will continue to do in the years ahead.

“While we have seen a more volatile economic backdrop over the first half of 2016, which became more pronounced following the vote to leave the European Union, this won’t impact our commitment to providing our customers with the products, services and advice they need.

“It is at times like this that customers want to know that their money is safe, they can get a mortgage to buy a home, and that advice is available to help them navigate the stormy seas.

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