Nationwide BS reports 17% rise in half-year pre-tax profits
Tuesday, 22 November 2011 11:51
Nationwide Building Society has released its performance report for the half-year ending in September 2011, showing a growth in profits despite the current economic climate.
The financial services provider said it achieved an underlying profit of £172 million, up 17 per cent (£25 million) on the corresponding period last year, as well as a statutory profit before tax of £238 million.
Nationwide also reported a 48 per cent increase in gross mortgage lending to £8.9 billion, with mortgage assets growing to £1.4 billion thanks to new savings deposits and a 167 per cent growth of balances.
This means Nationwide is now the second largest savings provider in the UK and its chief executive Graham Beale pointed out that it also has no direct sovereign exposure to eurozone countries such as Portugal, Italy and Greece.
"Market conditions are likely to remain difficult until the economy in the UK is more certain and the financial crisis in the eurozone is resolved. However, we are well placed to respond.
"Despite the uncertainties, I am confident that we can continue to invest in the business, deliver more products and services to more customers and deliver our strategic vision of being the UK's leading provider of retail financial services," he added.
Earlier this month, Nationwide announced that it had cut the rate on its personal loan product to 6.1 per cent APR, the lowest the financial services provider has ever offered and also the lowest rate from any bank or building society in the UK.
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