Partner Article

NBS breaks even

Newcastle Building Society has edged back into the black, having recovered from pre-tax losses of £35.7m in 2008 to a £100,000 pre-tax profit last year.

However, after tax, the firm’s profit falls to zero, meaning the mutual has broken even for last year’s trading.

Impairment losses on customer lending were reduced to £8m, down from £12.1m in 2008.

Chief executive Colin Seccombe, who will officially retire from his role at the helm of the company tomorrow, said: “It is pleasing to restore the society to a more stable position but we must recognise the continuing pressure on us especially as the high cost of securing funding, combined with the low interest rate environment, impacts the margin.

“There will remain many challenges in 2010, some will be testing, but I am confident the society will prosper under his leadership and thereby allow it to remain a strong independent mutual.”

Jim Willens will replace Mr Seccombe as chief executive.

This was posted in Bdaily's Members' News section by Ruth Mitchell .