Nottingham Building Society achieves strong financial results and further transformation in a year of consolidation

The key performance indicators disclosed below are based on the position at 30th June or for the 6-month period ended 30th June, unless otherwise stated. The average Liquidity Coverage Ratio (‘LCR’) represents a 12-month average for the period ended 30th June 2025.

£535.1m gross new lending (2024: £525.7m), representing an increase of 1.8%;
£4.4bn total mortgage assets (2024: £3.9bn), being growth of £0.5bn (or 12.9%);
4,076 new mortgage customers (2024: 4,069), a marginal increase of 0.2%;
£4.4bn total savings balance (2024: £4.0bn), an uplift of £0.4bn;
£82.1m total interest paid to savers (2024: £71.5m), an increase of £10.6m;
£11.0m underlying profit before tax (2024: £9.0m), an increase of 22.2% and reflecting growth in prior two years;
£8.0m profit before tax (2024: profit before tax £0.7m), representing an increase of £7.3m, with 2024 impacted by the Philips Trust Corporation payment scheme;
Reduction in underlying net interest margin to 1.61% (2024: 1.87%), reflecting sustained upward pressure on funding costs in a competitive market and our commitment to pay savers the best rates we can;
75.2% underlying cost: income ratio (2024: 76.6%), a decrease of 1.4%;
Expected coverage loss ratio of 11bps (2024: 15bps), a decrease of 4bps and reflecting strong asset quality;
Nottingham Building Society continues to benefit from a robust Capital / Liquidity base, demonstrated by:
- 13.5% CET1 ratio (2024: 14.0%);
- 4.8% Leverage ratio (2024: 5.3%);
- 191.8% average LCR (2024: 169.3%);
Strong service levels maintained with an increase in net promoter score to 63.6% (2024: 61.3%) and a 4.9 Trustpilot score (2024: 4.9); and
Maintaining a commitment to the communities we serve, with 1,501 colleague hours volunteered (2024: 1,200)

Sue Hayes, Chief Executive Officer (‘CEO’), commented on the results:

“We’re pleased to report a positive performance for the first half of 2025 as we consolidate the momentum built during a landmark 2024. Last year, we passed the £5bn 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.

Our strategy in 2025 is a deliberate one: to moderate lending growth while we implement new technology, strengthen our core banking systems and evolve our mortgage proposition to better serve customers who don’t fit the traditional mould. This transformation will enable us to grow with greater speed and agility in 2026 and beyond.

We’ve made great strides already. 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. Our digital and branch savers have benefitted from strong rates, particularly through our ISAs, whilst we’ve continued to support members through every channel.

We’ve also brought our new brand to life - publicly launched in October 2024 - with a positive increase in awareness and engagement. In May, we opened our first rebranded flagship branch in Nottingham City Centre, shaped by member and colleague feedback, with the response being overwhelmingly positive.

As a mutual, community impact remains a priority. Through our partnerships with Emmanuel House, Shelter and ThinkForward, we’re helping tackle homelessness and improve access to opportunities for young people. We’ve also continued to advocate for the interests of our members, including on issues such as ISA reforms.

While macroeconomic uncertainty and regulatory changes have added some external headwinds to the mortgage market, we remain focused on our transformation priorities. I’d like to thank our members for their continued loyalty and our colleagues for the passion and commitment they bring every day. Together, we’re building a stronger society for the future.”

Sue Hayes
Chief Executive Officer

28th July 2025