Nationwide in profit hike
Nationwide has increased underlying profits by 17 per cent in the last six months, it said this morning. The building society, which employs 3,000 people in Northampton, lent £8.9bn in mortgages over the period to 30 September.
Savings receipts levels rose by 250 per cent to £1.4bn, making Nationwide the second largest savings provider in the UK, it said.
Underlying profit was up to £172m for the six months to 30 September, compared with £147m in 2010.
This was driven by an "excellent performance" across Nationwide's range of personal financial products.
However, the market remained difficult as a result of the eurozone crisis, the mortgage provider said, with the UK housing sector remaining muted throughout 2011.
The low interest-rate environment and pressure on retail funding costs will continue to put pressure on net interest income, it added.
Chief executive Graham Beale said: "We continue to act as a 'challenger' to the established banks and have seen a 24 per cent increase in the combined sales of our current accounts, credit cards and personal loans.
"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: our balance sheet is one of the strongest of its kind with a core tier one ratio of 12.7 per cent, a core liquidity ratio of 13.5 per cent, diverse funding platforms and high-quality assets."
Nationwide increased it gross lending in the period by 48 per cent to £8.9bn, compared with £6bn last year, accompanied by an underlying growth in mortgage assets of £1.4bn, funded by new savings deposits of £1.4bn and a growth in balances of £2.4bn.
The building society said it was committed to helping first-time buyers get a foot on the housing ladder and lent more than £1.2bn, a 3 per cent increase, allowing 10,000 people to buy their first property.
