The Newcastle Building Society has reported that its pre-tax profits increased to £8.1m for the year ended 31 December 2016, compared with £5.4m for 2015. 

Operating profit before impairment charges and the Financial Services Compensation Scheme (FSCS) Levy was maintained at £11.9m.

Its gross residential lending rose 46%, from £340m to £496m, and net lending increased from £10m to £195m.

The Newcastle said this reflects higher levels of lending alongside greater retention of existing mortgage customers, and can be attributed to investment in distribution, expanded product range, and improved online systems capability for brokers.

The mutual helped more than 700 first time buyers get a foot on the property ladder in 2016, and alongside that achieved record low arrears figures across its mortgage book.

Andrew Haigh, the Newcastle’s chief executive, said: “We are committed to giving customers convenience and choice within a rapidly digitising world. We believe it is critical that when customers want help, information or advice, they can access this in a way that’s easy and convenient for them, whether that is online, over the phone or face to face.”