Newcastle Building Society reports ‘resilient’ half year results amid economic uncertainty

The mutual said it continued to invest and offer customers good value in a highly competitive market

Margin pressure and investment has prompted a dip in half year net interest income and underlying operating profits at Newcastle Building Society, though bosses are confident in “robust” results.

The country’s seventh largest building society had anticipated the movement set out in results for the six months to the end of June, in which net interest income was £51m – down on £48.3m in the same period as last year. That came despite net mortgage growth of £235m, meaning total mortgage balances of £5.9bn, and growth in savings balances to £6.2bn from £5.9bn.

The mutual cited a “highly competitive retail market” and increased wholesale funding costs which over deposits and drawdowns from Bank of England funding schemes. It meant underlying operating profit fell to £14.9m, compared to £15.9m, which was said to have been partly offset by modest growth in other income. Meanwhile pre-tax profits were up at £15.1m, compared to £10.8m in the same period last year.

Chief executive Andrew Haigh said the mutual had continued to contend with a fast-moving and sometimes uncertain external environment but that it had continued to invest – including in digital services and the group’s latest branch in Guisborough – and offer good value to savers and borrowers. He said the focus had been on building resilience and creating long-term strength.

The group’s outsourced savings management operation – Newcastle Strategic Solutions – contributed £27.9m of client income from savings during the six months, broadly flat compared with the same period last year. That business is undergoing a significant transformation requiring investment to bring new technology and capabilities to clients.

Mr Haigh said: “The first half of 2026 has demonstrated the resilience of our business model and the continued importance of our purpose-led approach. Despite an evolving external environment and continued global and UK political uncertainty, we have remained focused on supporting our members, investing in our communities and strengthening the long-term sustainability of the group.

“We will continue to build on this momentum in the second half of the year, with a clear focus on long term member value, supporting the sustainability of the communities we serve and maintaining the high levels of service and value our members expect. As always, I would like to thank our members for their continued support and our colleagues for their ongoing commitment and dedication.”