According to Newcastle Building Society’s latest financial report, net core residential lending fell from £575m to £496m.
The company also assisted 5,350 new customers during the year. This is a slight fall from 5,700 new mortgage customers in 2023.
The firm added that the standard variable rate (SVR) stood at 6.94% in 2024, which compares to a market average of around 7.87%. This saved SVR borrowers around £2.8m in interest payments throughout the year.
Newcastle Building Society’s underlying operating profit came to £31.9m during the period, which is a slight decrease from £32.8m.
Manchester Building Society to return to high street
The firm confirmed that it has made investment plans to “breathe new life” into the Manchester Building Society brand, which it merged with in 2023.
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Newcastle Building Society said it was working with local leaders and the community, and it aimed to “create a financial services offering based on the same principles of local face-to-face advice and trustworthy financial products that Newcastle Building Society has so successfully delivered in our North East, Cumbria and North Yorkshire regions”.
The company explained that the North West was one of the top four worst hit regions for bank and building society closures and over 700 branches had closed since 2015.
However, it was planning to open Manchester Building Society branches, with the first starting in the heart of Manchester city centre before expanding to Greater Manchester towns and the wider North West.
Newcastle Building Society is ‘well-positioned to deliver even more’
Andrew Haigh, Newcastle Building Society’s CEO, said he was “pleased to report another strong performance” for Newcastle Building Society and the wider group, as the firm “continue to maintain our focus on delivery of our purpose, ‘connecting our communities with a better financial future’”.
He continued: “Delivering that purpose for the long term is about more than being just another provider of savings, mortgages and financial advice. It requires a deep understanding of the communities we serve, careful allocation of resources, and an ongoing commitment to innovation, investment and growth across the group.
“Throughout 2024, we demonstrated continued commitment to our regions and communities. At the heart of that commitment is the provision of competitive saving and lending products, alongside financial advice in every one of our branches. Advice that is not solely a service for the wealthy, but available to every customer. Ensuring the accessibility of our financial services is a critical way we can make a difference to the financial futures of our communities.”
Haigh added that he saw a “future for branches and the role they can play within a community as part of our long-term thinking”, noting that since 2015, it had invested around £10m in new branch locations and the refurbishment of existing facilities.
“2024 was a successful year in the value we created for members, and in our financial results. I’m particularly proud that we continue to achieve outstanding customer satisfaction at 96 per cent. We laid the foundations for a bright new future for the Manchester Building Society brand and continued our commitment to community and high streets across our regions. With these results, I believe we are well-positioned to deliver even more, to create additional value for our members and greater positive impact in our communities,” he added.
