Mutual posts higher lending and savings balances amid ongoing transformation
Nottingham Building Society has reported a rise in profit and asset growth for the six months ending June 30, 2025, as the mutual continues to implement its transformation strategy.
Gross new lending reached £535.1 million, up 1.8% from £525.7 million a year earlier. Total mortgage assets increased by 12.9% to £4.4 billion, while the number of new mortgage customers remained steady at 4,076. The society’s total savings balance also grew to £4.4 billion, compared with £4.0 billion in the same period last year.
Underlying profit before tax stood at £11 million, up from £9 million, while profit before tax reached £8 million, compared with £0.7 million in 2024.
The underlying net interest margin declined to 1.61% from 1.87%, reflecting higher funding costs in a competitive market. The underlying cost-to-income ratio improved to 75.2%, down from 76.6%. The expected coverage loss ratio fell to 11 basis points, indicating continued strong asset quality.
The Nottingham maintained a robust capital and liquidity position, with a Common Equity Tier 1 (CET1) ratio of 13.5%, a leverage ratio of 4.8%, and an average Liquidity Coverage Ratio (LCR) of 191.8%. Service levels remained high, as shown by a net promoter score of 63.6% and a Trustpilot score of 4.9.
“We’re pleased to report a positive performance for the first half of 2025 as we consolidate the momentum built during a landmark 2024,” said Sue Hayes (pictured), chief executive officer at Nottingham Building Society. “Last year, we passed the £5 billion asset milestone, delivered significant growth and recorded our highest-ever savings levels. Entering this year, our focus has been on building long-term resilience - ensuring the right foundations are in place for a sustainable future.
“We’ve launched a new mortgage platform in July, diversified our funding through a successful public Residential Mortgage-Backed Security (RMBS) issuance and continued to innovate for the benefit of our broker partners and members.
“While macroeconomic uncertainty and regulatory changes have added some external headwinds to the mortgage market, we remain focused on our transformation priorities.”
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