Newcastle Building Society has announced its financial results for the first half of 2022, reporting strong performance in the first half of the year, despite a difficult economic backdrop.

The Society revealed operating profit had slipped back for the six months ended 30 June 2022. Net core residential lending was £181m, compared to £220m delivered in the first half of 2021 and mortgage arrears remain at low levels at 0.38% demonstrating the consistent quality of the Society’s mortgage lending.

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The key stats

 

  • Profit before taxation of £14.2m (2021: £15.9m)
  • Underlying operating profit of £14.2m (2021: 13.3m)
  • Gross mortgage lending of £448m (2021: £483m)
  • Net core residential lending for the first half of the year was £181m (2021: £220m)
  • Mortgage arrears remain at low levels at 0.38% (full year 2021: 0.42%)

The Society completed work at its newly refurbished branch in Bishop Auckland in January, and plans continue in partnership with North Tyneside Council to deliver a new branch within a refurbished Tynemouth Library building.

Industry awards

 

The Society’s financial advice subsidiary, Newcastle Financial Advisers, delivered a robust set of results in the first half of 2022. The Society’s savings management outsourcing business, Newcastle Strategic Solutions, also reported a strong start to the year, extending the partnership with one of its major clients and celebrating multiple client successes in savings industry awards.

Newcastle Building Society chief executive officer, Andrew Haigh said: “Whilst our lives and working patterns returned to a more normal pattern in 2022, the first six months also brought a new set of challenges and significant economic uncertainty. With a measure of care and caution we have been able to respond to those challenges and I am proud that we have delivered such a strong set of results against a difficult economic backdrop.

“The Society’s strength is in our purpose-led strategic approach, is more relevant than ever to our customers and communities as we face into ongoing challenges. That means maintaining a fair balance between savings and mortgage rates, whilst continuing to do all we can to help first time buyers and support those looking to save and plan their finances.

Apprentices

 

“Being able to welcome five customer service apprentices to the Society through our partnership with Newcastle United Foundation provides a glimpse at what can be achieved when we commit to helping young people in our region build their skills and secure meaningful jobs. It gives me confidence that whilst the challenges we all face look set to continue, the strength of our organisation will help us during the months and years ahead as we strive to make as much progress as we can to deliver on our purpose, to connect our communities with a better financial future.”

The Society’s community grant-giving programme through the Community Foundation Tyne & Wear and Northumberland has continued to make a real difference across the North East, North Yorkshire and Cumbria. Community funding totalling £182,000 was delivered in the first half of the year, including £15,000 to seven charities tackling social isolation through Platinum Jubilee celebration events. Grant-giving was focused to help tackle issues around employability, social isolation, food poverty, homelessness, debt management, and cancer care.

Following the outbreak of conflict in Ukraine, a donation of £25,000 was made to the Disasters Emergency Committee to help those impacted.

In March, the Society also celebrated two milestones in its commitment to grow talent from within its region. The announcement of a new five-year partnership with Walking With The Wounded, including an annual donation of £25,000 to support their employability programme, kickstarts a collaboration which will create supported veteran employment opportunities across the Newcastle Building Society Group.

And the official opening of NUCASTLE powered by Newcastle Building Society provides Newcastle United Foundation with a new home as well as a state-of-the-art community facility for sports, education and wellbeing in the city. The partnership with the club’s official charity took a further step forward when the first cohort of apprentices joined the Society in full-time employment.

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