The group said it have been investing in people and systems
The boss of Newcastle Building Society has talked of progress for the group but warned of headwinds looming in the year ahead.
In newly published 2025 results, the Tyneside-based mutual saw strong mortgage lending of £1.2bn, matching 2024 levels, as retail savings grew from £5.4bn to £6bn. But strong increases in net interest and fee income were offset by cost hikes and substantial investments, meaning underlying operating profit before impairments and provisions fell from £31.9m to £29.7m. Pre-tax profits grew from £15.7m to £22.6m following 2024’s provision for victims of the Philips Trust Corporation collapse.
Chief executive Andrew Haigh said it was a year of progress of the group but cautioned of an “ever more uncertain and unpredictable world” in which there would be more economic and business headwinds to navigate. He said the mutual was well equipped to meet any challenges that lie ahead.
In July, the Society opened its new, multimillion-pound flagship branch at Monument in Newcastle city centre – bringing five floors of a former retail unit back into use. And in September, the group’s recently acquired Manchester Building Society brand opened a three-storey branch three-storey branch on the city’s King Street, which it pointed to as a signal of its intent in Greater Manchester.
Meanwhile, the group’s outsourced savings management business – Newcastle Strategic Solutions – saw savings accounts it manages grow to 1.8m from 1.6m in 2024 and £1bn growth in its balances under management to £52bn in deposits. But the subsidiary fell to a pre-tax loss of £6.2m for 2025 thanks to higher staff costs.
Mr Haigh said: “2025 was a year of further growth and substantial investment in all areas of our group, ensuring that we have the people capabilities, the technology and the physical presence to continue in the delivery of our purpose for current and future generations of members. Progress was manifested very visibly in the re-launch of the Manchester Building Society brand, taking our distinct approach to delivering member value to the North West and in the opening of our new flagship branch at Monument in the very centre of Newcastle.
“We also saw continued growth of our savings management outsourcing subsidiary, Newcastle Strategic Solutions, which is now managing record balances in excess of £52bn on behalf of its bank and building society clients. We have continued to invest in people, growing the number of colleagues, particularly, within the Solutions business to support the increased client activity.
“Behind the scenes we have advanced our multi-year, multimillion-pound programme to replace ageing technology with modern and flexible systems across the group. We are investing significantly in an upgrade of our customer facing technologies, to bring an enhanced experience for those engaging with us through digital channels, together with new product capabilities and to bring more efficient systems to support our branch colleagues. Progress has been strong, with a number of the new capabilities now fully operational and already having a positive impact.”








