View more on these topics

Newcastle posts pre-tax loss of £35.7m

Newcastle Building Society has reported a pre-tax loss of £35.7m for 2008 against a backdrop of £43m in exposures to failed Icelandic banks.

Icelandic exposures accounted for nearly all of the £44.7m total impairment charges for the year, which dragged down the mutual’s results from a profit of £17.6m in 2007.

Newcastle has been hit by a levy of £6.8m to cover its contribution to the Financial Services Compensation Scheme.

Other building societies such as Skipton and Britannia have seen their profits eroded by almost half in some cases due to the FSCS levy.

Colin Seccombe, chief executive of Newcastle Building Society, says: “Results this year have been impacted in a major way by the exceptional market events of 2008.

“The year has presented extremely tough challenges and we expect that trading
conditions will continue to be difficult in 2009.”

But he also stresses that adds that Newcastle’s underlying results remain strong as the society has reduced its wholesale funding ratio and attracted more deposits.

He adds: “We are in a strong, fit position for the future and we are committed to remaining an independent, mutual building society for the benefit of all our members.”

Recommended

Brokers forged in the fire will survive

We are living in extraordinary times. In fact, even the word extraordinary somehow seems too ordinary to describe the current roller coaster global economic situation.

Looking forward to recovery

We have seen a sea change in the performance of the household sector in relation to debt and borrowing in the past 18 months.

Abe and Modi

Investment ideas to power returns

We believe the most exciting stockmarket opportunities today are in those places where a new generation of leaders are successfully transforming economies and companies in favour of investors. In a new investment guide and website, which is suitable for use with your clients, we set out our views on these reformers. Click here to find […]

Newsletter

News and expert analysis straight to your inbox

Sign up