Newcastle Building Society has announced its financial results for the first half of 2025, sharing continued progress and increased underlying operating profit of £15.9m [HY 2024: £15.6m], demonstrating the solid underlying business model that underpins the Group.
2025 Half Year highlights
[Note: financial results quoted are for the half-year to 30 June 2025 (and equivalent period in 2024, unless stated as Year End)]
- Increased underlying operating profit of £15.9m [HY 2024: £15.6m]
- Net interest and other income grew by 15% over the first half of 2025 to £81.9m [HY: £71.2m]
- Growth in savings balances to £5.7bn [YE 2024: £5.4bn]
- Value for savers offering an average savings rate across the first five months of the year, which was 0.62% better than the market average, equating to £13.8m more interest for Members over the same period [source: CACI’s CSDB Stock Jan 25 – May 25]
- Gross residential lending of £570m (HY 2024: £584m)
- Value for borrowers with a Standard Variable Rate (SVR) for mortgages at the start of July of 6.50% against a market average of 7.60%, saving SVR borrowers around £850,000 in interest payments over the first half of 2025
- Overall customer satisfaction of 97% (YE 2024: 96%)
- Continued support for communities through grant giving, colleague volunteering, and partnership working, supporting local good causes aligned to strategic community priorities
Net interest and other income increased by 15% over the first half of 2025 demonstrating margin growth in the Member business, as well as growth in income in Newcastle Strategic Solutions.
Offsetting this were losses on instruments the Group holds at fair value, which were impacted by the economic environment, as well as increases in costs relating to investment in colleagues and non-colleague related costs, including investment in systems and infrastructure, resulting in operating profit before impairments and provisions of £10.5m [HY 2024: £20.1m].
Higher mortgage and savings balances were driven by outstanding customer service and good value products.
Total savings balances held by the Society grew by 4% to £5.7bn [YE 2024: £5.4bn] and the Society achieved an excellent overall customer satisfaction score of 97% [YE 2024: 96%] during the first six months of the year.
The Society helped more than 1,000 first time buyers onto the property ladder, whilst delivering gross mortgage lending of £570m [HY 2024: £584m]. Its Standard Variable Rate (SVR) for residential mortgages remains one of the most competitive on the market, having been reduced twice in 2025 to 6.50%. The market average SVR over the first half of the year was 7.60%, meaning the Society’s SVR borrowers saved more than £850,000 in additional interest payments.
The Society also shared progress on its Member Value commitments, and details of its successful branch-based growth strategy.
“In a challenging global and political environment, these results show clear evidence of our commitment to creating value for our Members as a place-based, purpose-led organisation while delivering solid performance."
Andrew Haigh, chief executive at Newcastle Building Society, said: “In a challenging global and political environment, these results show clear evidence of our commitment to creating value for our Members as a place-based, purpose-led organisation while delivering solid performance.
“Our high street presence and a commitment to face to face service and accessible financial advice is clearly valued by our Members as evidenced by the growth in our high street savings balances and the number of customers we have helped access their first home.
In a dynamic interest rate environment, the Society continued to offer good value to savers with an average savings rate 0.62% higher than the rest of market average of 3.17% across the first five months of the year, equating to £13.8m more interest for savings Members.
In a climate where branches are continuing to close, pushing customers to an online environment, regardless of their needs and preferences, in July the Society opened its new flagship branch at the iconic Monument in Newcastle city centre. This followed an extensive, multi-million-pound refurbishment with all five floors of the Grade II-listed building returned to public use.
Andrew Haigh added: “Monument is more than a branch. Our ambition is that the space and facilities on offer make it a focal point for meaningful conversations and collaboration, bringing together our communities and partners to drive positive change in the city and beyond.
“Work is also progressing well on our new location in King Street, Manchester, which will be the first branch under our new Manchester Building Society brand delivering better financial access for the people and places of Greater Manchester.”
The Society continues to deliver on its commitment to communities, focusing on priority issues around employment and opportunity, debt management, housing security and homelessness, food poverty, and the environment. Nearly £100,000 in grants were allocated through the Group’s Community Funds in the first half of the year. In the North West, grants totalling £20,950 were issued to five charities from the Manchester Building Society Community Fund at Forever Manchester. The Newcastle Building Society Community Fund at the Community Foundation North East also issued 15 grants totalling £71,240.
And the Society’s Helping Hand service – which is delivered in partnership with Citizens Advice Gateshead – has continued to help Members and colleagues across the UK with fast, free and confidential support on a wide range of issues, often linked to cost of living. So far this year, the service has helped more than 100 individuals, issuing 48 emergency grants by way of shopping vouchers and advising on available benefits and support.
Since launching in 2023, Helping Hand has supported more than 400 people, and through advice and information around access to welfare and benefits, helped to realise a total support for them of more than £1m.
Andrew Haigh added: “As a place-based, purpose-led customer-owned business we are increasingly aware of the role we can play in supporting our Members and their communities through these often challenging and turbulent times. Our high street presence and a commitment to face to face service and accessible financial advice is clearly valued by our Members as evidenced by the growth in high street savings balances and the number of customers we have helped access their first home.
“As always, we are grateful for the ongoing support of our Members in the North East and as the year progresses, the North West and for the hard work of colleagues across the business in ensuring that we can continue to ‘connect our communities with a better financial future’.”
Read the full Stock Exchange Announcement – Half Year Results 2025 (PDF).