AUS
NZ
UK
CA
USA
IND
Newcastle Building Society (LSE:NBSR) has announced its financial results for the first half of 2024, showcasing continued progress in strategic delivery despite a dip in profit before tax.
Financial Performance
The Society reported a notable increase in operating profit before impairments and provisions, reaching £20.1 million, up from £17.9 million in the first half of 2023. Underlying profit also saw a modest rise to £15.6 million from £15.0 million year-over-year. However, profit before tax for the Group decreased significantly to £0.2 million from £16.3 million in the previous year. This decline is attributed to the Society’s decision to offer voluntary support to members affected by issues related to The Will Writing Company and The Philips Trust Corporation.
Capital Strength and Investments
Newcastle Building Society’s capital position remains robust, with the Common Equity Tier 1 ratio at 12.1%, slightly down from 12.5% at the end of 2023. To bolster its capital and support ongoing investments in technology and branch network development, the Society successfully raised an additional £20 million in tier 2 capital in June 2024. This has increased the total capital ratio to 14.2%, up from 14.1% at the end of 2023.
