Newcastle Building Society has reported a rise in profits and continued customer growth in its full-year results for 2025, highlighting the role of its expanding branch network and community-focused strategy.
The Newcastle Building Society Group – which includes the retail brands of Newcastle Building Society and Manchester Building Society, as well as subsidiaries Newcastle Strategic Solutions and Newcastle Financial Advisers – said the results reflected the ongoing delivery of its purpose-led, place-based strategy aimed at supporting members and regional communities.
During the year the group welcomed 5,800 new mortgage customers, up from 5,350 in 2024, while customer satisfaction reached 97% and the net promoter score rose to a record +87.
Gross residential lending remained steady at £1.2bn, while savings balances increased to £5.9bn from £5.4bn the previous year. Profit before tax rose to £22.6m, compared with £15.7m in 2024, while the net interest margin improved to 1.49% from 1.44%.
The society also continued to support local initiatives, with more than £98,000 distributed through its community funds and over 9,000 hours of colleague volunteering delivered during the year.
BRANCH INVESTMENT AND STRATEGY
Andrew Haigh (pictured), chief executive of Newcastle Building Society, said the results underlined the benefits of the group’s approach to maintaining a physical presence on the high street.
He 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.
“Our commitment to high streets and the provision of accessible financial services in our regions has never been stronger.
“Progress was brought to life very visibly in the re-launch of the Manchester Building Society brand including a new branch on King Street, and in the opening of our new flagship branch at Monument in the very centre of Newcastle.
“We’ve continued to invest significantly by growing our high street presence and advancing our multi-million-pound technology upgrade programme to enhance the experience for customers and improve efficiency right across the Group in the years ahead.”
The society said product innovation had also supported mortgage growth. Its First Step mortgage – designed for borrowers without access to family support or gifted deposits – helped drive new lending activity during the year.
It added that rising savings balances and strong customer satisfaction scores demonstrated the continued importance of accessible face-to-face financial services.
Haigh said: “Our focus on providing accessible services and good value through our branch network builds long term customer relationships.
“This approach is the strategic foundation of our successful growth and remains completely at odds with the mantra of many big banks who continue to close their high street branches.
“We remain steadfast in our commitment to our branch network and continue to explore opportunities to bring our creative thinking, collaboration and innovation to more communities in our regions.”
SUBSIDIARY BUSINESSES AND COMMUNITY PARTNERSHIPS
The group’s financial advice arm reported growing demand for advice delivered through its branch network, with Newcastle Financial Advisers receiving VouchedFor’s Top Rated Firm status for the fourth consecutive year and also winning the Client Impact Award.
Newcastle Strategic Solutions, the society’s savings management outsourcing business, now manages more than £52bn of balances on behalf of its bank and building society clients.
The society also continued to develop regional partnerships aimed at building financial confidence and improving employment prospects.
In the North East it maintained its long-standing partnership with Newcastle United Foundation, delivering school workshops and employability support including interview preparation and career guidance. In the North West it continued its collaboration with EMPOWER, supporting young people across Greater Manchester.
Haigh said: “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.
“Against a backdrop of ongoing macro-economic pressure and rapidly evolving geopolitical uncertainties, I’m confident that we’re well positioned to adapt and address the challenges which 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.”
