Newcastle Building Society announces resilient half year performance and continued delivery of member value

31 July 2026

[Note: financial results quoted are for the half-year to 30 June 2026 (and equivalent period in 2025, unless stated as Year End)]

Savers earned £10.5m more interest than the market average between January and April 2026 through rates that were on average 0.55% higher than the market average
Standard Variable Rate (SVR) borrowers saved approximately £790,000 in interest payments compared with the market average during the first half of 2026
Maintained strong customer satisfaction at 97% and customer Net Promoter Score of +85
Profit before tax increased to £15.1m (HY 2025: £10.8m)
Underlying operating profit of £14.9m (HY 2025: £15.9m)
Assets grew to £7.4bn (YE 2025: £7.0bn)
Savings balances increased to £6.2bn (YE 2025: £5.9bn)
Gross mortgage lending of £623m (HY 2025: £570m)
Net residential mortgage growth of £289m (HY 2025: £156m)
Continued investment in communities through grant giving, partnerships, volunteering and free community spaces

Newcastle Building Society, which also includes the Manchester Building Society brand, has announced its financial results for the first half of 2026, highlighting a resilient financial performance, continued balance sheet growth and ongoing delivery against its purpose of connecting communities with a better financial future.

Newcastle Building Society continued to provide strong value to savers. Between January and April 2026, members received savings rates that were on average 0.55% above the market average, equating to more than £10.5m in additional interest earned by savings members.

Borrowers also benefited from competitive pricing. The Society's Standard Variable Rate averaged 6.34% during the first half of the year, compared with a market average of 7.13%, saving members on SVR products around £790,000 in interest charges.

Customer satisfaction remained high at 97%, while customer advocacy remained exceptionally strong with a Net Promoter Score of +85.

The Society also updated on progress against its member value commitments, including maintaining access to face-to-face financial services through its branch network and supporting communities through strategic partnerships and grant funding.

In the first half of 2026, Newcastle Building Society opened a new high street branch in Guisborough, bringing a full range of services to a community that had previously lost access to a competing provider's presence.

The first half of 2026 also saw continued progress in the development of Manchester Building Society. The brand continues to build its presence in the region, supporting the Group's ambition to increase access to trusted financial services and strengthen community partnerships across the North West.

The Society reported profit before tax of £15.1m, up from £10.8m in the first half of 2025. The increase was primarily driven by net fair value and hedge accounting gains of £1.8m compared with losses of £5.6m in the same period last year.

Underlying operating profit was £14.9m (HY 2025: £15.9m), reflecting ongoing investment in colleagues, technology and infrastructure to support the long-term sustainability of the Group, alongside continued margin pressure in a highly competitive market.

Total assets increased to £7.4bn (YE 2025: £7.0bn), while savings balances grew by £354m during the first six months of the year to £6.2bn (YE 2025: £5.9bn). Mortgage balances increased by £235m to £5.9bn.

New mortgage lending in the first half of 2026 was £623m, compared to £570m for the same period in 2025. Mortgage retention also improved significantly, with 80% of mortgage maturities retained during the period.

The Society also continued to invest in trusted and accessible financial advice through Newcastle Financial Advisers. More than 6,000 advice appointments were completed during the period, and the business received the VouchedFor Client Impact Award for a fifth consecutive year.

Through the Newcastle Building Society Community Fund, grants totalling more than £85,700 were awarded to 14 charities and organisations aligned to priority areas including employability and financial inclusion. While the Manchester Building Society brand continued to support the development of relationships and initiatives that will help deliver positive impact across Greater Manchester. Colleagues also contributed more than 1,934 volunteer hours during the first half of the year.

The Society strengthened its commitment to creating opportunities across the North East through an extended partnership with Newcastle United Foundation. The renewed three-year agreement includes an additional investment of £500,000 to support community hubs in Howdon, Ashington and the MetroCentre, helping young people access skills, confidence and pathways into employment.

Andrew Haigh, Chief Executive at Newcastle Building Society, 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 and often challenging external environment with continued global and UK political and economic uncertainty, we have remained focused on creating long-term value for our members, investing in our communities and strengthening the sustainability of the Group.

"As a customer-owned organisation, our success is measured not only by financial performance, but by the positive difference we make in the places we serve. Across the North East and North West, we continue to support people and communities through accessible face-to-face services, trusted financial advice, community partnerships, grant funding and initiatives that help create opportunity and improve financial wellbeing.

"The opening of our new Guisborough branch, alongside the continued development of Manchester Building Society in Greater Manchester, demonstrates our commitment to maintaining access to financial services at a time when many high streets are losing them. Through both our Newcastle and Manchester brands, we are investing in the future of our communities, creating welcoming places where people can access trusted support, financial guidance and services that meet their needs.

"We will continue to deliver value through competitive savings and mortgage products while investing in the capabilities, partnerships and infrastructure that will enable us to support members and communities for generations to come.

"As always, I would like to thank our members for their continued support and our colleagues for their commitment and dedication to delivering our purpose of connecting our communities with a better financial future."