PROFITS at Newcastle Building Society are almost double last year's figure, the lender has reported this morning in its half-year results.

Profit before tax of £1.5m for the six months ended June 30 compared to £800,000 for the same period in 2014.

Operating profit before impairment charges and FSCS (Financial Services Compensation Scheme) levy improved to £6.1m from £5.9m.

Mortgage completions in the first half were up 6.5 per cent but net residential lending was down compared to the first half of 2014.

Andrew Haigh, the Newcastle's chief executive who succeeded Jim Willens on May 1, outlined his vision for the business when he said: "As someone who believes passionately in the mutual sector I am excited about the opportunity to take the Society’s business forward keeping our members and mutual ethos at the heart of our strategy.

"During the last six months there has been a high degree of uncertainty in financial markets prompted by the re-emergence of problems within the Eurozone, uncertainty around the election and then following the election over whether the UK will stay in Europe. "In addition the pace of growth in developing economies has also started to ease with the resultant impact being lower commodity prices and UK inflation now being at the lowest levels since records of CPI inflation began. Despite the backdrop of volatility in global markets and further austerity on the horizon the UK economy continues on the path to recovery. Recent pronouncements from the Governor of the Bank of England now suggest that a rise in bank rate is likely to happen sooner rather than later which will be welcome news for savers.

"Mortgage rates are also likely to rise although the record low rates available in the last 6 months appear to have had minimal impact on the housing market with the Council of Mortgage Lenders recently revising down its full year forecasts for 2015 gross and net residential lending. A lack of housing supply and pronouncements from the Financial Policy Committee on housing market tools they may deploy are also likely to have a dampening effect on the housing market.

"I am pleased with the Society’s performance in the first half of 2015. Our profitability and capital ratios have improved, arrears are at a record low, progress on legacy wind-down has exceeded expectations and the service to our members has been maintained at very high levels. In addition we have made excellent progress on our infrastructure and regulatory projects.

"We have however not been immune to the more challenging backdrop for mortgage lending seen in the first half of 2015. Whilst completions were up 6.5 per cent compared to the first half of 2014, intense competition on mortgage pricing combined with a lower than expected market size, resulted in net residential lending being lower than the first half of 2014. Mortgage lending will be an area of continued focus in the second half and in to next year," he concluded.