Newcastle Building Society’s lending falls but profit up

Michael Lloyd

February 27, 2019

Newcastle Building Society’s gross residential mortgage lending was maintained at £520m last year, down from £535m 2017 and net residential lending was at £160m, a decrease from £220m 2017. 

However profit before tax improved to £13.3m, compared to £13.1m for 2017.

Andrew Haigh, chief executive, said: “2018 has been a significant year of change and progress for Newcastle Building Society.  We have seen our highest growth in income compared to recent years, increasing profitability and growth in our member base.

“Whilst economic uncertainties may continue, we will maintain our focus on investing in our business, our colleagues and our communities to build a strong regional building society that is recognised for making a genuine difference to people and communities across the North East.”

2017 profit before tax included a one-off credit of over £2m relating to the purchase of its Cobalt office in North Tyneside, the 2018 figure represents an operating profit of £2.2m, reflecting an enhanced business performance.

Newcastle helped more than 1,100 first-time buyers onto the housing ladder during the year.

Operating profit before provisions and exceptional items increased by £2.6m to £14.7m, from £12.1m in 2017.

The society delivered an overall growth in income to £6.6m, total operating income £64.5m in 2018, compared to £57.9m in 2017.  This was offset by an increase in costs of £3.9m.

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