Building up to double profits
5:30am Tuesday 19th August 2014 in By Elizabeth Mackley
SWINDON-based building society Nationwide celebrated yesterday after doubling its profits for the same time last year.
Following the end of the first quarter, Nationwide, which is the country’s biggest customer-owned lender and has it’s headquarters in Pipers Way, has announced that profits for the first quarter are more than double what they were at the end of the first quarter in 2013.
According to the latest figures, underlying profits of £263m were up by 117 per cent in the three months to the end of June, compared to the same time last year.
The building society put the good news down to the continued efforts to improve services to customers, and welcomed the result.
A Nationwide spokesperson said: “These results build on last year’s strong performance and demonstrate that Nationwide has continued to stay true to its mutual heritage: helping our members save, buy their own home and manage their money in a way that suits them. As a result, Nationwide remains number one for customer service satisfaction.
“All of our employees, many based here in Swindon, continue to play a fantastic role in keeping up this positive momentum – ensuring that we continue to focus on the needs of our members across the UK.”
The mutual society said its share of current accounts rose slightly from 6.2 per cent at the beginning of the quarter to 6.4 per cent, with around 110,000 new accounts being opened during the period, while member deposits increased by £1.5 billion to £132 billion. Meanwhile gross mortgage lending fell to £5.8 billion from £6.4 billion a year earlier.
Graham Beale, Nationwide's Chief Executive, said: “Following on from a robust financial performance last year, our first quarter has delivered another strong set of results, with underlying profits up 117 per cent at £263 million and statutory profit up 141 per cent at £253 million.
“As a result, we have continued to strengthen our capital position with our CET1 ratio now standing at 16.3 per cent and our leverage ratio increasing to 3.7 per cent.
“Nationwide has continued to help members to save, buy their own homes and manage their money in a way that suits their needs. As a result, member deposits increased by £1.5 billion, we grew our share of current accounts to 6.4 per cent and we supported the housing market, helping over 23,000 people to buy their home, with gross mortgage lending of £5.8 billion.
“In line with our focus on customer service we have sustained our position as number one for customer service satisfaction, where our lead over our high street peer group has increased over this period.”
Nationwide were unable to confirm whether any employees would be awarded bonuses at this time.
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