Half year performance update 2016/17
Record current account and lending growth as Nationwide protects savers and supports members during uncertain times.
18 November 2016: Nationwide today announced its half year results; over the last six months Nationwide Building Society has continued to help people own their own homes and save for the future. This has resulted in record current account openings and mortgage lending with steps taken to protect savers, contributing to a strong growth in member deposit balances.
Joe Garner, Nationwide Chief Executive, said: “In the last six months, despite the economic uncertainty following the Brexit vote and a further base rate cut, Nationwide Building Society has continued to serve the needs of its members and to trade very strongly.
“Due to conscious decisions the Society has taken to support members in recent years and during this uncertain period, our profits have reduced, in line with expectations, but remain healthy at £615 million representing Nationwide’s third most profitable half year.
“In the last six months, we lent £14.7 billion to help members buy their own home or move up the housing ladder, almost a quarter more than in the same period last year. We arranged a record 38,600 mortgages for first time buyers, an increase of 50% over last year.
“After the base rate cut we also put in place a support package to protect rates for those saving to buy a home, and regular loyalty saving accounts, so that the road to home ownership does not grow even longer. It also encouraged a savings habit by protecting rates on our regular saving accounts. The steps we have taken have contributed to an annualised benefit of £380 million for our members.
“Over the last six months and in recent years we have taken conscious decisions to protect our members’ interests. We knew these decisions would contribute to a reduction in profits in the first half. However, the success of Nationwide Building Society, and our mutual status, mean we can make decisions for the benefit of our members over the long term.
“Elsewhere in the business, we’re attracting new members, notably in current accounts, with more people than ever before choosing Nationwide for their everyday banking. We opened a record 377,000 current accounts in the first half, a third more than last year and also attracted nearly 16% of all current account switchers.
“We know that many communities have been left with no access to financial services after years of branch closures. So today, we’re announcing our plans to test the viability of whether we can use technology to bring financial services to communities left without a bank. We’ll pilot this concept in Glastonbury, Somerset, where a consultation suggested that over 1,000 local residents were willing to become a member of Nationwide to support the Society’s investment. This branch will combine the latest technology with face to face personal service.
“We are proud of our passion for improving member outcomes, and this has given us the best customer satisfaction ratings on the high street, further increasing our lead over the nearest high street competitor to 8%.”
Click on the image to open a summary of the Half year performance 2016/17.
You can also find out more information in the Interim Results Statement for the period ended September 30, 2016.