THE Newcastle Building Society's investment in technology is paying dividends.

The society's Internet account, NewcastleNet Savings, launched in mid-June, attracted £25m by the end of that month.

The account now has total balances of more than £160m.

Such is its success that the society's chief executive Robert Hollinshead has pledged to extend the product range available online to include share dealing, loan approvals and a general insurance service which will include quotations, purchase and claims.

He said: "The society is looking at an Internet shopping mall which will include our services as well as those offered by a variety of other businesses. There will be around 25,000 products available online by the end of the year."

As well as services on the Internet, the society also offers similar products via interactive television through a partnership with Telewest.

At the moment, mortgage approvals and fixed term savings products are available, although this will be extended to interactive savings accounts by the autumn.

The Newcastle has also agreed to provide its Internet account to another financial institution, but it can't reveal the name until the deal is passed by the regulator.

But Mr Hollinshead said: "This deal is about making the best use of economies of scale. By offering our expertise to other organisations in this way, we can help them keep pace with the fiercely competitive marketplace and enter new business areas that might otherwise prove cost-prohibitive."

Mr Hollinshead was speaking as the Newcastle revealed group profits after tax, up eight per cent to £5.3m in the six months to June 30..

The Newcastle's total assets grew by £150m to £2.31bn in the first six months. Gross lending rose by 18 per cent to a record £193m and total savings balances increased by £40m