Annual results announcement
Nationwide shows a strong and profitable performance
23 May 2012: Today Nationwide is reporting a strong annual results performance for the year ended 4 April 2012. The Group has delivered an underlying profit up 10% to £304 million and its balance sheet is one of the strongest of its kind in the industry with a Core Tier 1 capital ratio of 12.5%, and high levels of liquidity.
Statutory profit is down 36% to £203 million having allowed for a fair value credit on financial instruments of £35 million, charges of £75 million for the Financial Services Compensation Scheme and the bank levy and £61 million of restructuring costs.
Highlights of Nationwide’s business performance include increasing gross residential mortgage lending by 44% to £18.4 billion, compared to just a 5% increase across the market. Nationwide has helped over 24,000 first time buyers into homes, a 9% increase from last year. Nationwide regained the position of being the UK’s second largest savings provider with savings net receipts up 67% to £1 billion.
Customer Service remains a huge focus with Nationwide rated number one on the high street for customer satisfaction and complaint levels 56% lower than 2010. Despite being the second largest savings provider and third largest lender, the FSA reports that Nationwide accounted for only 1.5% of all industry complaints.
Graham Beale, Nationwide’s Chief Executive said:
“Nationwide is the UK’s largest mutual building society, our financial position remains strong and robust. We continue to position ourselves as a challenger brand, a real and viable alternative to the established banks for the provision of retail financial services, with a sole focus on the interests and needs of our current and future members and customers.
“The key strategic delivery in the last year has focused on growth across all of our principal product lines. We have bucked market trends demonstrating our commitment to supporting growth in the economy as well as meeting the needs of borrowers, especially first time buyers. In the personal banking arena we have seen a 13% increase in the sale of current accounts, credit cards and personal loans.
“We have achieved growth without compromising our standards of customer service. We are independently assessed as a leading provider of customer satisfaction in financial services and report our service performance on our website.
“Our plan for the forthcoming year is to do more of the same, to focus on the needs of our members and customers, to play our role in supporting the UK economy and to continue to invest to deliver improved levels of service, efficiency and product choice.”
View the Society’s 2011/2012 Full Year Results in more detail here.