The mutual’s total assets surpassed £7bn, up from £6.6bn the year before, which it said was driven by strong mortgage lending and a continued growth in savings. Its savings balances rose from £5.4bn to £5.9bn.
Over the year, Newcastle Building Society supported 5,800 new mortgage borrowers, an increase on the 5,350 served the year before. The mutual said this was helped by its product innovation, such as its First Step mortgage, a 98% loan-to-value (LTV) offering targeted to borrowers with a minimum deposit of £5,000 who do not have financial support from family or gifted deposits.
In 2025, the mutual opened its flagship Newcastle Building Society branch and its first branch under the Manchester Building Society brand, saying its physical presence and savings balances attracted and retained through its branches supported lending activity.
Newcastle Building Society said its mortgages were one of the most competitive in the market last year, as its standard variable rate (SVR) averaged 6.67% throughout the year, compared to the market average of 7.44%. The mutual said its borrowers on an SVR saved around £1.6m in interest payments compared to the market average.
Its net interest margin rose from 1.44% to 1.49%, as it repaid the outstanding £366.7m Bank of England’s Term Funding Scheme, positively benefitting the net interest margin.
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Its underlying profit before impairments and provisions fell from £31.9m to £29.7m, as the increases in net interest and fee income were offset by higher operational costs and investments.
The group’s profit before tax rose from £15.7m to £22.6m.
Andrew Haigh, chief executive of Newcastle Building Society, said: “We’re pleased to report another strong year delivering for our members, with a performance that endorses our purpose-led, place-based approach, and the ongoing investment in our colleagues, technology, and physical presence in our communities.
“As the group grows and evolves, we can clearly see the success of our strategy in the value we’re creating for members and our communities, and the positive impact we’re having in our regions.”
He added: “Against a backdrop of ongoing macroeconomic pressure and rapidly evolving geopolitical uncertainties, I’m confident that we’re well-positioned to adapt and address the challenges [that] may lie ahead.
“Investing in the growth of the organisation and the ongoing transformation of our systems and processes are key areas of focus to ensure that the society and the wider group will continue to thrive for the benefit of current and future members and their communities.”
