Member Article

Newcastle Building Society announces 50% increase in pretax profits

Newcastle Building Society has revealed strong profit margins for the year, reporting a 50% increase from £5.4m in 2015 to £8.1m for the year ended 31 December 2016.

2016 also saw the Society achieve a significant uplift in mortgage lending, despite fiercely competitive mortgage market conditions.

Its gross residential lending rose 46%, from £340m to £496m, and net lending increased from £10m to £195m.

This reportedly reflects higher levels of lending alongside greater retention of existing mortgage customers, and can be attributed to investment in distribution, expanded product range, and improved online systems capability for brokers.

700 first time buyers were assisted in getting on the property ladder in 2016, and alongside that achieved record low arrears figures across its mortgage book.

Andrew Haigh, chief executive, said: “We are very pleased with the progress we made last year.

“The increase in profit reflects the impact of the investment to date and the hard work of our staff, and enables us to continue investing for the benefit of our members and the region as a whole.

“From great employment and development opportunities for local people, to continuously improving digital and branch customer service, and our commitment to growing our community support both through funding and staff volunteering, Newcastle Building Society is connecting people in the North East with a better financial future.”