Half-year Financial Report
Summary by AI BETAClose X
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Nottingham Building Society ('NBS') Results for the six-month period ended 30th June 2026
NBS delivers resilient financial performance and continued transformation as foundations for growth are strengthened
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 2026.
· £336.8m gross new lending (2025: £535.1m); · £4.2bn total mortgage assets (2025: £4.4bn); · 2,420 new mortgage customers (2025: 4,076); · £4.6bn total savings balance (2025: £4.4bn); · £72.6m total interest paid to savers (2025: £82.1m); · £9.6m underlying profit before tax (2025: £11.0m); · £6.2m profit before tax (2025: profit before tax £8.0m); · 1.50% underlying net interest margin (2025: 1.61%); · 75.6% underlying cost: income ratio (2025: 75.2%); · 11bps expected credit loss coverage ratio (2025: 11bps); · 14.3% CET1 ratio (2025: 13.5%); · 5.1% leverage ratio (2025: 4.8%); · 257.3% average LCR (2025: 191.8%); · 74.2% net promoter score (2025: 63.6%); · 4.8 Trustpilot score (2025: 4.9); and · 1,865 colleague hours volunteered (2025: 1,501).
Sue Hayes, Chief Executive Officer ('CEO') commented on the results: "We are pleased to report a resilient performance for the first half of 2026 as we cement the foundations for Nottingham Building Society's next phase of growth.
After two consecutive years of double-digit growth, 2025 represented a year of deliberate consolidation, and that disciplined approach continues to shape our strategy in 2026. Against a complex backdrop of inflationary pressure, geopolitical instability, and continued competition across mortgage and savings markets, we have stayed focused on delivering for members while progressing the Society's long-term transformation.
During the first half of the year, we continued to embed our strategy as a modern, specialist residential lender, investing in our core banking and technology foundations, strengthening our intermediary proposition, and taking a disciplined approach to lending growth. We also delivered strong outcomes for savers, and another positive ISA season, while continuing to advocate for the role mutuals can play in supporting financial resilience and access to home ownership.
We have continued to build our brand presence, bring our community partnerships to life, and invest in the talent and capabilities across the Society, including enhancements to our colleague reward package.
Looking ahead, our focus for the second half of 2026 is to scale lending for Extra Ordinary Borrowers, continue evolving our product and proposition offer, and publish our proprietary research that helps shape future product, proposition, and policy thinking within the underserved market.
We remain confident in our strategy and our ability to deliver sustainable, long-term value for our members. I would like to thank our members for their continued loyalty and our colleagues for the commitment they show every day."
Chief Executive Officer 29th July 2026
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Consolidated income statement for the six months ended 30 June 2026 |
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Period to 30 June 2026 (Unaudited) |
Period to 30 June 2025 (Unaudited) |
Year Ended 31 Dec 2025 (Audited) |
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£m |
£m |
£m |
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Interest receivable and similar income |
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|
|
|
129.4 |
146.4 |
289.6 |
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Interest payable and similar charges |
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|
|
|
(89.1) |
(103.6) |
(202.9) |
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Net interest income |
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|
|
|
40.3 |
42.8 |
86.7 |
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Fees and commissions receivable |
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|
|
0.8 |
0.9 |
1.8 |
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Fees and commissions payable |
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|
|
|
(0.6) |
(0.9) |
(1.5) |
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Net losses from derivative financial instruments |
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|
(2.0) |
(3.3) |
(3.0) |
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Total net income |
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|
|
|
38.5 |
39.5 |
84.0 |
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Administrative expenses |
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|
(30.2) |
(30.3) |
(63.1) |
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Depreciation and amortisation |
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|
(1.9) |
(2.6) |
(4.8) |
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Operating profit before impairment, provisions and disposals |
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6.4 |
6.6 |
16.1 |
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Impairment (charge) / credit - loans and advances to members |
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(0.3) |
0.4 |
0.4 |
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Voluntary payment expense associated with Philips Trust Corporation |
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|
0.1
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- |
0.4 |
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Recoveries against Philips Trust Corporation |
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- |
0.1 |
0.1 |
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Movement in Equity Investment Fair Value |
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|
- |
- |
(1.1) |
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Profit on disposal of premises |
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|
|
|
- |
0.9 |
0.8 |
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Profit before tax |
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|
6.2 |
8.0 |
16.7 |
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Tax charge |
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|
(1.2) |
(2.8) |
(6.0) |
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Profit after tax |
5.0 |
5.2 |
10.7 |
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Reconciliation to underlying profit before tax |
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Period to 30 June 2026 (Unaudited) |
Period to 30 June 2025 (Unaudited) |
Year Ended 31 Dec 2025 (Audited) |
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£m |
£m |
£m |
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Profit before tax |
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6.2 |
8.0 |
16.7 |
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Losses from derivative financial instruments |
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|
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2.0 |
3.3 |
3.0 |
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Net strategic investment costs |
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1.5 |
0.7 |
1.4 |
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Voluntary payment expense associated with Philips Trust Corporation |
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|
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(0.1)
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-
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(0.4)
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Recoveries against Philips Trust Corporation expense |
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- |
(0.1) |
(0.1) |
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Movement in Equity Investment Fair Value |
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- |
- |
1.1 |
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Profit on disposal of premises |
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|
|
- |
(0.9) |
(0.8) |
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Underlying profit before tax |
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9.6 |
11.0 |
20.9 |
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Consolidated statement of financial position as at 30 June 2026 |
30 June 2026 (Unaudited) |
30 June 2025 (Unaudited) |
31 Dec 2025 (Audited) |
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£m |
£m |
£m |
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Assets |
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Liquid assets |
1,049.5 |
952.8 |
1,071.1 |
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Derivative financial instruments |
25.0 |
47.6 |
29.4 |
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Loans and advances to members |
4,239.7 |
4,365.8 |
4,305.0 |
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Fixed and other assets |
37.0 |
30.9 |
30.8 |
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Total assets |
5,351.2 |
5,397.1 |
5,436.3 |
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Liabilities |
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Shares |
4,618.2 |
4,452.0 |
4,631.2 |
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Wholesale funding |
405.7 |
610.0 |
465.5 |
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Derivative financial instruments |
18.4 |
37.7 |
31.2 |
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Other liabilities |
13.2 |
14.7 |
17.7 |
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Subscribed capital |
24.0 |
24.0 |
24.0 |
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Total liabilities |
5,079.5 |
5,138.4 |
5,169.6 |
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Reserves |
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General reserves |
269.0 |
258.5 |
264.0 |
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Fair value reserves |
0.5 |
0.2 |
- |
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Revaluation reserve |
2.2 |
- |
2.7 |
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Total reserves attributable to members of the Society |
271.7 |
258.7 |
266.7 |
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Total reserves and liabilities |
5,351.2 |
5,397.1 |
5,436.3 |
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Consolidated statement of changes in members' interests for the period ended 30 June 2026 |
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General reserve |
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FVOCI reserve |
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Revaluation reserve |
Total |
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£m |
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£m |
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£m |
£m |
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Balance as at 31 December 2025 (Audited) |
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|
264.0 |
|
- |
|
2.7 |
266.7 |
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Profit for the period |
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|
5.0 |
|
- |
|
- |
5.0 |
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Other comprehensive income for the period (net of tax) |
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|
|
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||
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Net gains / (losses) from changes in fair value |
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|
- |
|
0.5 |
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(0.5) |
- |
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Remeasurement of defined benefit obligation |
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|
- |
|
- |
|
- |
- |
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Balance as at 30 June 2026 (Unaudited) |
|
|
269.0 |
|
0.5 |
|
2.2 |
271.7 |
|
|
|
|
|
|
|
|
|
|
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Balance as at 31 December 2024 (Audited) |
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|
253.3 |
|
- |
|
- |
253.3 |
|
Profit for the period |
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|
5.2 |
|
- |
|
- |
5.2 |
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Other comprehensive income for the period (net of tax) |
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|
|
|
|
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Net gains from changes in fair value |
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|
- |
|
0.2 |
|
- |
0.2 |
|
Remeasurement of defined benefit obligation |
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|
- |
|
- |
|
- |
- |
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Balance as at 30 June 2025 (Unaudited) |
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|
258.5 |
|
0.2 |
|
- |
258.7 |
|
|
|
|
|
|
|
|
|
|
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Balance as at 31 December 2024 (Audited) |
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|
253.3 |
|
- |
|
- |
253.3 |
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Profit for the year |
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|
10.7 |
|
- |
|
- |
10.7 |
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Other comprehensive income for the period (net of tax) |
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|
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Net gains from changes in fair value |
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|
- |
|
- |
|
2.7 |
2.7 |
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Remeasurement of defined benefit obligation |
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|
- |
|
- |
|
- |
- |
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Balance as at 31 December 2025 (Audited) |
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|
264.0 |
|
- |
|
2.7 |
266.7 |
|
Summary consolidated cash flow statement for the period ended 30 June 2026 |
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Period to 30 June 2026 (Unaudited) |
Period to 30 June 2025 (Unaudited) |
Year Ended 31 Dec 2025 (Audited) |
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£m |
£m |
£m |
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Cash flows from operating activities |
9.5 |
10.3 |
22.2 |
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Changes in operating assets and liabilities |
(11.9) |
4.0 |
112.6 |
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Net cash (used) / from operating activities |
(2.4) |
14.3 |
134.8 |
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Cash flows from / (used) in investing activities |
3.9 |
(121.2) |
(255.4) |
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Cash flows used in financing activities |
(1.3) |
(1.2) |
(2.4) |
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Increase / (decrease) in cash and cash equivalents |
0.2 |
(108.1) |
(123.0) |
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Cash and cash equivalents at beginning of period |
326.6 |
449.5 |
449.6 |
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Cash and cash equivalents at end of period |
326.8 |
341.4 |
326.6 |
Notes
The financial information set out above, which was approved by the Board of Directors on 29th July 2026, does not constitute accounts within the meaning of the Building Societies Act 1986.
The financial information for the year ended 31st December 2025 has been extracted from the Annual Report and Accounts for the year and on which the auditors have given an unqualified audit opinion.
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