(Note: financial results quoted are for the full year to 31 December 2024 (and equivalent period in 2023, unless stated)
Newcastle Building Society has published its results for 2024, delivering another strong financial performance whilst emphasising the importance of listening to Members and communities.
Maintaining continuing investment in branch innovation and the provision of face-to-face financial services the Society highlighted how it creates value for Members and its communities across Newcastle Building Society Group1.
2024 highlights include:
- Average savings rates for Newcastle Building Society customers were 0.56% higher than the market average, resulting in £28.1m more savings interest for Members compared to the market average
- The Standard Variable Rate (SVR) for Newcastle Building Society mortgages remained one of the most competitive on the market at 6.94% throughout 2024 vs a market average of 7.87%, saving its SVR borrowers around £2.8m in interest payments during 2024 compared to the market average
- Customer satisfaction score of 96% (2023: 95%); net promoter score (NPS) of +86 (2023: +82)
- The Society made a donation of more than £1m to the Newcastle Building Society Community Fund at the Community Foundation and during 2024 24 grants totalling more than £140,000 were allocated from the Fund
- More than 10,000 hours (approx 1400 days) of colleague volunteering
- Announced investment plans in 2025 to breathe new life into its Manchester Building Society brand. The aim: to create a financial services offering based on the principles of local face-to-face advice and trustworthy financial products
2024 financial highlights include:
- Profit for the year before taxation fell to £15.7m (2023: £29.1m) as a result of the voluntary financial support offered to customers impacted by the actions and subsequent collapse of Philips Trust
- Operating profit before impairments and provisions improved by 9% to £34.2m (2023:£31.4m)
- Underlying operating profit decreased slightly to £31.9m (2023: £32.8m)
- Gross mortgage lending for 2024 increased to £1.2bn, exceeding the previous record level of£1.1bn set in 2023, whilst net core residential lending reduced to £496m from £575m in 2023
- The Society raised £20m of tier 2 capital in June and £40m of additional tier 1 capital in December to support the Society’s development and growth plans
Newcastle Building Society Chief Executive fficer, Andrew Haigh, said:
“We’re pleased to report another strong performance for Newcastle Building Society and the wider Group, as we continue to maintain our focus on delivery of our Purpose ‘connecting our communities with a better financial future.’ Delivering that Purpose for the long term is about more than being just another provider of savings, mortgages and financial advice. It requires a deep understanding of the communities we serve, careful allocation of resources, and an ongoing commitment to innovation, investment and growth across the Group.
“Throughout 2024 we demonstrated continued commitment to our regions and communities. At the heart of that commitment is the provision of competitive saving and lending products, alongside financial advice in every one of our branches. Advice that is not solely a service for the wealthy, but available to every customer. Ensuring the accessibility of our financial services is a critical way we can make a difference to the financial futures of our communities.”
The recent Budget changes, increasing levels of complexity in legislation and the UK tax regime, as well as the growing need for people to navigate their way through cost-of-living challenges, have driven a strong performance in the Society’s financial advice subsidiary, Newcastle Financial Advisers, which also achieved the VouchedFor ‘Top Rated Firm’ status for a third consecutive year, with an average rating of 4.9/5 voted by their customers.
Over the 12 months to December 2024 average savings rates for Newcastle Building Society customers were 0.56% higher than the market average, resulting in £28.1m more savings interest for Members compared to the market average.
In 2024, branch savings balances grew by £442.2m, reflecting the success of the Society’s branch network which combined with ongoing investment into digital channels, gives customers choice in how they interact.
Andrew Haigh added, “We see a future for branches and the role they can play within a community as part of our long-term thinking. Since 2015 we’ve invested around £10m in new branch locations and the refurbishment of existing facilities.”
The Society opened its 32nd branch in Pickering in 2024, restoring access to financial services in the town, and continuing its pioneering use of a multi-bank kiosk within branches, through its work with fintech partner OneBanx. In North Shields, the Society relocated a branch to share space with YMCA North Tyneside at their vibrant community hub. This provides convenient access to a full range of branch services alongside the charity’s busy café, gym, and programme of community activities. A full branch refurbishment in Hartlepool and a re-location to a new facility in Middlesbrough added to a busy year for branch investment.
Activity to breathe new life into the Manchester Building Society brand has also begun. The North West is one of the four worst hit regions for bank and building society closures. By contrast, Manchester Building Society will open new branches, starting in the heart of Manchester city centre.
Andrew Haigh added: “We’re proud of our unique understanding of what it means to be a building society serving our communities. Throughout 2024, following the merger with Manchester Building Society, we have begun a conversation with local leaders and Manchester communities. Our aim is to create a financial services offering based on our principles of branch presence, face-to-face advice and trustworthy financial products – a combination that Newcastle Building Society has so successfully delivered in our North East, Cumbria, and North Yorkshire regions.”
During 2024, a donation of £1.1m was made to the Newcastle Building Society Community Fund, building the endowment to around £3.5m and increasing the level of funding available to charities for generations to come. Grants worth £140,000 were distributed during the year, reaching more than 200,000 people through 24 regional charities tackling issues linked to the Society’s strategic community priorities of food poverty, homelessness, debt management, employability, and sustainability.
In collaboration with strategic partner, Newcastle United Foundation, Society branch colleagues delivered more than 200 different financial coaching sessions or scam awareness talks across 50 schools in the region, reaching nearly 5,000 pupils. More than 5,000 participants also benefited from 33 employability sessions which were supported by 76 Society colleagues.
Andrew Haigh concluded:
“2024 was a successful year in the value we created for Members, and in our financial results. I’m particularly proud that we continue to achieve outstanding customer satisfaction at 96 per cent. We laid the foundations for a bright new future for the Manchester Building Society brand and continued our commitment to community and high streets across our regions. With these results, I believe we are well positioned to deliver even more, to create additional value for our Members and greater positive impact in our communities.”
The Stock Exchange announcement can be found on our financial results page.
1 References to ‘Newcastle Building Society Group’ refer to Newcastle Building Society, to its trading name, Manchester Building Society, and to its subsidiary companies, including Newcastle Financial Advisers and Newcastle Strategic Solutions.