The building society also saw a group profit before tax of £29.1m (2022: £32.6m), and an underlying operating profit of £32.8m (2022: £26.7m) 

In a challenging period, shaped by wider economic uncertainty and market volatility, the society said that it provided additional support to borrowers, consistently offered savings rates above the market average, and continued to grow, invest in infrastructure, and make a positive difference in its communities including a commitment to branches and the provision of access to face-to-face financial services.

Newcastle Building Society CEO, Andrew Haigh, commented: “I’m proud that, as a society, we have remained true to our purpose of “connecting our communities with a better financial future” while delivering another set of strong results in 2023.

“We have continued to focus on the strategic ambitions underpinning our purpose of achieving growth, investing in the group’s infrastructure for the long term and of course, delivering value for our members.

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“The volatile market conditions throughout 2023 will have impacted all our members but borrowers, and especially those remortgaging from historically low fixed rates to the higher rates that prevailed during the year, faced higher repayments, adding to the squeeze on their household finances. 

“My hope is that members recognise the value that comes with being part of our mutual organisation; the additional support we’ve provided to those worried about their mortgage repayments, consistently offering savings rates above the market average and making a positive difference in our communities across key areas of focus, including our commitment to branches, increasing access to face-to-face financial services and fostering employability within the region.

“In a difficult year, we have continued to deliver for our members, our communities, and our colleagues.

“We demonstrated the character and resilience required to navigate uncertain and fast-changing market conditions.

“Not only were we able to grow the business, and deliver a merger with Manchester Building Society, we’ve attracted new customers, supported members where needed, offered good value, and continued to invest in the future of the organisation.

“These remain challenging times, but I believe the society is well placed to respond and to achieve new levels of performance through our ambition and continued investment and that our ever-greater focus on delivering value to members will amplify the positive impact we make in our communities.”