Newcastle Building Society said it delivered a resilient performance in the first half of 2026, with profit before tax rising to £15.1 million from £10.8 million in the same period last year.

Total assets grew to £7.4 billion (31 December 2025: £7.0bn), with net mortgage growth of £235 million (six months to 30 June 2025: £138 million), alongside growth in savings balances to £6.2 billion from £5.9 billion.

“Despite growth in mortgages and savings balances, net interest income decreased from £51.0m for the six months to 30 June 2025 to £48.3m, as margin pressure continued in a highly competitive retail market and wholesale funding costs increased,” said Newcastle Building Society CEO Andrew Haigh.

“As a result, underlying operating profit reduced to £14.9m compared to £15.9m for the first half of 2025, primarily reflecting lower net interest income, partly offset by modest growth in other income.

“Administrative expenses remained broadly unchanged, with lower colleague costs and reduced strategic investment costs offsetting inflationary cost pressures.”

The Newcastle said that over the January-May 2026 period, its savings rates were 0.56% higher than the market average (same period in 2025: 0.62%), meaning its members earned more than £13.4 million in additional interest (same period in 2025: £13.8m).

“In a challenging market environment, we have also continued to offer good value to borrowers,” said CEO Haigh.

“Our standard variable rate (SVR) averaged 6.34% during the first half of 2026 (first half of 2025: 6.81%), compared to a market average of 7.15%, meaning members on SVR products saved approximately £790,000 in interest charges (first half of 2025: £850,000).

“Accessible and trusted financial advice remains a core part of our proposition available to all members regardless of investment levels, and delivered through our subsidiary, Newcastle Financial Advisers Limited.

“Demand for advice continues to be strong, with more than 6,000 advice appointments conducted in the first half of 2026 (first half of 2025: 6,100+), highlighting the importance of our place-based and authentic advisory service.

“We are pleased that Newcastle Financial Advisers has been recognised with the VouchedFor Client Impact Award for the fifth year running, reflecting the continued positive customer experience and the impact financial advice provides to our members.”