Newcastle Building Society has announced its financial results for the first half of 2022, reporting “strong performance” in the first half of the year, despite a “difficult economic backdrop”.
Highlighting opportunities to leverage its commercial resilience to extend support for Members and communities, the Society revealed operating profit before impairments and provisions of £13.9m for the six months ended June 30, 2022, compared to £14.7m for the six months ended 2021.
Continued momentum across all areas of the business has contributed to sustained profitability, which the Society attributes to its “purpose-led strategy in the face of new challenges”.
Newcastle Building Society was one of the first savings providers to respond to the Bank of England’s decision to increase the base rate of interest, passing on the rise to the majority of variable rate savings products.
Although the rate of house price inflation has slowed, any rise makes it even more difficult for homebuyers to save for a deposit. The Society’s continued focus on supporting first time buyers and low deposit borrowers contributed to gross mortgage lending of £448m for the first half of the year.
Net core residential lending was £181m, compared to £220m delivered in the first half of 2021 and mortgage arrears remain at low levels at 0.38 per cent demonstrating the “consistent quality” of the Society’s mortgage lending.
In March, the Society announced plans to open a new branch in Knaresborough, North Yorkshire, working in partnership with North Yorkshire County Council and Harrogate Borough Council to establish a branch within the town’s library.
Work at the new branch was recently completed and the branch opened its doors on July 18, the latest step of an ongoing multi-million pound programme of investment which includes the completion of work at its newly refurbished branch in Bishop Auckland in January.
Newcastle Building Society chief executive officer, Andrew Haigh, commented: “Whilst our lives and working patterns returned to a more normal pattern in 2022, the first six months also brought a new set of challenges and significant economic uncertainty.
“With a measure of care and caution we have been able to respond to those challenges and I am proud that we have delivered such a strong set of results against a difficult economic backdrop.”
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