Mutual hails progress in 'volatile' market

A mutual has hailed its hardiness in a “volatile global political and economic environment” after chalking up higher savings demand.

Newcastle Building Society saw customer balances rise four per cent to £5.7 billion in the six months to June 30.

The clamour helped nudge comparative underlying operating profit higher to £15.9 million, with total mortgage balances increasing marginally to £5.4 billion.

Bosses said the figures reflect a solid performance amid “challenging and turbulent times”.

They added its progress was aided by its longstanding commitment to face-to-face service through high street branches, with a recent investment in a Newcastle base set in the shadows of the city’s Grey’s Monument evidence of its “purpose-led” approach.

They also praised the performance of its Newcastle Strategic Solutions arm – which manages savings accounts for other UK providers – after balances under management increased by more than £700 million to £51.4 billion in the first half of 2025.

Andrew Haigh, chief executive at the mutual, which operates more than 30 branches across the North East and North Yorkshire, said: “We are increasingly aware of the role we can play in supporting members and their communities through challenging and turbulent times.

“Our high street presence and commitment to face-to-face service and accessible financial advice is clearly valued, as evidenced by the growth in savings balances and the number of customers we have helped access their first home.

“The first half of 2025 has seen significant investment in infrastructure and technology, most notably evidenced by the launch of our Monument branch.

“We remain committed to continuing to invest in the products and services that matter to members and ensure a robust future for the business.”

He added the mutual – whose wider portfolio includes Manchester Building Society – issued nearly £100,000 of charitable grants in the first half, with more than £70,000 received by good causes in the North East and nearly £21,000 in the North West.

The mutual's results also showed it made a £21.2 million voluntary provision in 2024 following the administration of Philips Trust Corporation.

The body previously oversaw a number of trusts held by mutual members previously referred to The Will Writing Company by the savings and mortgage provider.

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