Half-year results for building society 'solid'

BOSSES at Newcastle Building Society have pointed to solid underlying half-year results despite the impact of the way interest rate swaps are valued in its numbers.

- TOM KEIGHLEY

The mutual saw operating profits fall to £10.5m in the first half of the year, compared with £20.1m in the same period last year. Meanwhile, underlying operating profit was up marginally to £15.9m, compared with £15.6m at the same point last year. Net interest income and other income grew strongly to £81.9m, compared with £71.2m in the first half of 2024.

Investors on the London Stock Exchange were told of unrealised losses on instruments the group holds, having been impacted by issues in the wider economy, and increased costs thanks to investment in staff, systems and infrastructure all weighed on the group's results.

But the society also saw gains across a number of key areas, including its mortgage book growing to £5.4bn from £5.3bn at the end of 2024, and a 4% rise in savings balances to £5.7bn.