A mutual has unveiled a growth blueprint after chalking a record performance in a “challenging year” led by the fallout from a trust fund firm’s collapse.
Newcastle Building Society saw gross mortgage lending rise to a best-ever £1.2 billion in 2024, with branch savings balances growing by £442.2 million.
Bosses say they will use its momentum to expand its Manchester Building Society arm with new branches across the city and wider North West region.
The positivity came against a 46 per cent drop in pre-tax profit to £15.7 million, as bosses set aside £20 million to pay customers hit by the collapse of Philips Trust Corporation.
The voluntary move followed the administration of Philips Trust Corporation, which oversaw a number of trusts held by mutual members previously referred to The Will Writing Company by the savings and mortgage provider.
Describing 2024 as a “year of progress”, Andrew Haigh, chief executive, said the mutual, which has branches across the North East and further sites in Hawes, Knaresborough, Pickering and Stokesley, North Yorkshire, is “well-positioned to deliver over the long term”.
He said: “2024 was another challenging year for our communities, facing higher living costs and uncertainty in the wider economy.
“I am particularly encouraged by our increasing momentum in our commitment to place, and a continuing physical presence in our regions to support our members and communities.
“We laid the foundations for a bright new future for Manchester Building Society (and have announced) investment plans to breathe new life into the brand.
“The North West is one of the UK’s top four worst-hit regions for bank and building society branch closures.
“By contrast, Manchester Building Society will open branches, starting in the heart of Manchester city centre, and over time across Greater Manchester’s towns and the wider North West.”
And Andrew said the mutual will continue providing support to efforts aimed at helping those affected by the demise of Philips Trust Corporation.
He added: “As we began to understand the scale of the impact on members, we chose to offer voluntary support to those involved.
“Our actions are entirely consistent with the principles of Newcastle Building Society and the wider mutual movement.
“And we will continue to offer support to any current or future police investigation which aims to hold those responsible to account.”
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