‘Encouraging’ half year for Newcastle Building Society as operating profits grow 16%
Newcastle Building Society has reported an ‘encouraging’ half year with profits on the up and jobs created.
The organisation increased its operating profit in the six months to June to £7.2m, a year-on-year uptick of 16% attributed to an influx of new savers and a growing demand for branch-based financial advice.
Pre-tax profits were down, falling from £7.2m in HY 2017 to £6.9m, although last year’s figures were bolstered with an exceptional profit of £2.1m relating to the purchase of the group’s Cobalt Park office in North Tyneside.
Similarly, gross mortgage lending dipped from £303m to £229m but remained in line with the group’s growth plan.
H1 2018 also saw the group deliver a refurbishment programme across its network of 28 branches and create 26 jobs. It plans to create a similar number of positions during H2 2018.
Chief exec Andrew Haigh said: “I am delighted that we have been able to improve operating profitability at a time when we continue to invest in our branch network, our community and creating a great place to work for our colleagues.
“Our financial performance at half year is particularly encouraging as we are reporting increased profits from ongoing operations, strong capital ratios, a robust liquidity position and low levels of arrears, reflecting the excellent credit quality of our residential mortgage lending.”