NEWCASTLE Building Society last night confirmed plans to close 19 of its 52 branches after a business restructuring plan.

But the mutual said it remained committed to its heartland and all its North-East branches would be unaffected by the closure plan.

The branches it has chosen to close had become "increasingly unviable" because of a lack of use by customers, it said. But it added: "The society remains totally committed to its remaining 33 branches and to an on-going investment and development programme in them.

"It will also continue to support fully its 36-strong agency network."

The trend of moving away from branches by customers was likely to continue in the long-term, the society said, and this had made it difficult to justify keeping them open.

High staff turnover - twice that of the society's branches in the North-East - and problems with recruitment had also led to the branch closures.

A statement from the building society said: "This is due primarily to low job satisfaction resulting from the low volume of work. Staff in the closing branches conduct 39 transactions on average per week, accounting for just 14 per cent of the total branch-based customer transactions."

The society said it reported strong financial results for last year and was expanding, with growth in total assets of 6.36 per cent to £3.27bn.

It plans to re-invest savings from the branch closures in its heartland branches and non-core businesses.

Exact redundancy numbers are not known, as in some branches staff will be offered other positions.

The society said redundancies would be kept to a minimum and would be voluntary wherever possible.

The branches closing are in Edinburgh, Paisley, Ayr, Falkirk, Manchester, Workington, Preston, Leeds, Bradford, Hull, Huddersfield, Leicester, Peterborough, Newton Stewart, Kendal, Berwick, Sheffield, Nottingham and Doncaster.

Robert Hollinshead, chief executive officer of Newcastle Building Society, said: "Announcing the closure of a number of branches across the country has been a difficult decision, and we regret deeply any inconvenience to customers.

"However, the business reasons for the branch closures are compelling.

"I know some customers will be upset at this move, but it is best for the society as a whole.

"The society will be concentrating on branches in its North-East heartland where branch usage is high and the brand offers a competitive advantage. There are no plans to make further closures."