Nationwide reports record lending as profits surge

Nationwide-Building-Logo-Closeup-700x450.jpg

Nationwide has reported record gross lending figures in the first half of the financial year as pre-tax profits soared 34 per cent.

The building society’s interim results for the six months to 30 September, published this morning, reveal gross lending surged 14 per cent year-on-year, from £13.1bn to £14.9bn. The firm’s gross market share has also increased, from 12.2 per cent on 30 September 2014 to 13.2 per cent this year.

Nationwide’s profits for the period were £802m, up from £598m at the same point in 2014.

The group has, however, made a £24m provision for customer redress, primarily relating to past payment protection insurance sales.

Nationwide chief executive Graham Beale says: “This has been our best ever half year of mortgage lending along with a strong inflow of savings and the opening of over a quarter of a million new current accounts. Our first half performance reflects the growing strength and security of the society with all of our core product areas delivering standout results.”

Looking ahead, Nationwide acknowledges shifts in interest rate expectations could affect demand but says a strengthening labour market and continued economic recovery “should support both activity and house prices”.