The Society said all the branches are outside of the Society’s core North-East heartland and have become increasingly unviable due to falling customer usage. It has pledged its commitment to its remaining 33 branches and to brokers.
Rik Kendall, media relations manager at the Newcastle, confirmed: “This will have no impact on our intermediary-related business.”
The branches closing are located in Edinburgh, Paisley, Ayr, Falkirk, Manchester, Workington, Preston, Leeds, Bradford, Hull, Huddersfield, Leicester, Peterborough, Newton Stewart, Kendal, Berwick, Sheffield, Nottingham and Doncaster.
The areas surrounding the branches are well populated with other financial services providers so customers unable to conduct their business through direct channels (phone, internet, post) will be able to find other branch services.
Robert Hollinshead, chief executive of the Newcastle, said: “Announcing the closure of a number of branches across the country has been a difficult decision and we regret any inconvenience to customers.
However, the business reasons for the branch closures are compelling. I know some customers will be upset at this move but it is best for the Society as a whole. There are no plans for any further closures.”
The move comes after The National Australia Bank (NAB) announced the closure of 100 of its UK branches in May.
In October 2004 Portman Building Society closed three branches and nine further branches were given extended opening hours to encourage greater usage. Customers of these branches were given the opportunity to ‘vote with their feet’ over a 12-month period to keep them open.
Helen Shaw, group communications manager at the Portman, said: “It’s currently too early to provide comment on the initiative but we are continuing to monitor the branches involved and will be able to provide an update towards the end of the year.”
