Share of profits

What happens when Northern Community Bank makes a profit?

At the end of the financial year when the community bank performs well, after providing for reserves and operating costs, we share the remaining profits – there are no external shareholders.

As Northern Community Bank is a cooperative organisation we pay a share of the profits on account holder’s savings. The amount of profits we share is not guaranteed, as we cannot predict how we will perform over the next financial year however below we can illustrate what the rate has been for the previous years.

Loan Interest Rebate

As an extra benefit to account holders who also take out loans from Northern Community Bank, when the community bank performs well we also give a rebate on the interest paid by the borrower. We believe it is a major benefit to account holders who choose to borrow from Northern Community Bank. President Gerard Spain, speaking the 43rd AGM in 2025 highlighted

“That means for every £10 of interest an account holder paid in the last year when borrowing from Northern Community Bank, the loan rebate will return £1.70 to them”

The share of profits and loan rebate is paid gross, directly into your account shortly after the AGM. Since no tax is deducted, it is your responsibility to disclose the dividend to the HMRC.