During the period, the mutual saw a 0.2% increase in new mortgage customers compared to last year, rising to 4,076.
Its mortgage assets rose by 12.9% to £4.4bn, while its net interest margin contracted from 1.87% in 2024 to 1.61% this year.
Nottingham Building Society said this reflected “sustained upward pressure on funding costs in a competitive market” and its “commitment to pay savers the best rates” it could.
The mutual paid £82.1m in interest to savers, a 22.2% growth on last year.
Its profit before tax rose significantly from £700,000 to £8m.
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Sue Hayes (pictured), chief executive of Nottingham Building Society, said: “We’re pleased to report a positive performance for the first half of 2025 as we consolidate the momentum built during a landmark 2024. Last year, we passed the £5bn asset milestone, delivered significant growth and recorded our highest ever savings levels.
“Entering this year, our focus has been on building long-term resilience – ensuring the right foundations are in place for a sustainable future.”
She added: “Our strategy in 2025 is a deliberate one: to moderate lending growth while we implement new technology, strengthen our core banking systems and evolve our mortgage proposition to better serve customers who don’t fit the traditional mould. This transformation will enable us to grow with greater speed and agility in 2026 and beyond.
“We’ve made great strides already. We’ve launched a new mortgage platform in July, diversified our funding through a successful public residential mortgage-backed security (RMBS) issuance and continued to innovate for the benefit of our broker partners and members.”
“While macroeconomic uncertainty and regulatory changes have added some external headwinds to the mortgage market, we remain focused on our transformation priorities.
“I’d like to thank our members for their continued loyalty and our colleagues for the passion and commitment they bring every day. Together, we’re building a stronger society for the future,” Hayes added.
