Newcastle Building Society has shared its financial results for the first half of 2023, reporting continued growth through the period.
The Society responded to multiple increases in bank base rate by introducing a Standard Variable Rate (SVR) for mortgages at the end of June of 5.19% against a market average of 7.63%, saving members almost £336k in interest payments for the month alone.
This approach helped the Society attract net core residential lending of £408m.
The Group’s profit before tax of £16.2m for the period ending 30 June 2023, compared to £14.2m for the same period last year.
Support for all customers impacted by the cost-of-living crisis was enhanced, including through an ongoing partnership with Citizens Advice Gateshead to deliver the Helping Hand service offering free access to advice on a wide range of topics, as well as emergency financial support.
Newcastle Building Society was also amongst the first group of lenders to sign up to the Government’s Mortgage Charter, which provides additional support and reassurance for people concerned about their mortgage repayments.
Andrew Haigh (pictured), chief executive at Newcastle Building Society, said: “Persistent inflation and the rising cost of living continues to present ongoing and difficult challenges for our communities, and the first half of the year has been shaped by unpredictable market conditions creating a complex trading environment.
“Our responsibility to members, communities and wider stakeholders is clear and as rates increase, we have been mindful of the need to find a fair, equitable and consistent approach in balancing increases in variable savings and variable mortgage rates.
“The fact that we have attracted so many new customers to the Society demonstrates the value of that approach and enables us to do more to support customers and those in our communities.”
Further investment for communities in the region included a donation of £179,000 from the Newcastle Building Society Community Fund.
In March, the Society announced the largest ever single allocation of small grants from the Fund, with 27 charities receiving a total of £91,931.
A further £20,000 was donated to the Disasters Emergency Committee to provide urgent aid to people impacted by the earthquakes in Syria and Turkey.
Haigh added: “It has been a difficult period, but the potential difference we can make as a customer-owned, purpose-led, and community focused business is more significant than ever.
“As well as serving our customers better, and continuing to invest in colleagues, we are actively contributing to our communities through partnerships with Newcastle United Foundation, the Prince’s Trust and Walking With The Wounded, by growing our Community Fund at the Community Foundation, and by supporting colleagues to give their time and skills to local good causes.”
He concluded: “Although the economic outlook remains uncertain, the business remains resilient and well-positioned to achieve further growth whilst supporting our customers and communities by delivering great outcomes and making a positive impact where it is needed most.”
