Nationwide full year results 2015/16
Full year results: Long term focus on member needs drives strong performance
24 May 2016: More than 57,000 people bought their first home with the help of Nationwide last year –accounting for one in six of all first time buyers – a year that saw the Building Society lend more money to help people into a home of their own than since before the 2007 financial crisis.
This is just one of the standout figures from Nationwide’s full year results for 2015 to 2016, a performance that reflects the Building Society’s long term focus on putting members first with great products and excellent customer service.
As well as helping homebuyers, Nationwide also helped the UK’s savers, with members entrusting the Building Society with £6.3 billion more of their savings, including almost 200,000 new Loyalty accounts.
More people opted to manage their money with Nationwide by choosing one of its current accounts. The Building Society opened over half a million new current accounts during the year, now account for over 7% of the current account market.
According to Building Society’s new CEO, Joe Garner, the results mark out the difference it makes to members’ lives. He explains: “I believe it’s our mutual model that enables us to take a long term view that results in leading customer satisfaction outcomes that drive financial performance. Nationwide is a building society and is, therefore, motivated by a powerful social purpose which has been the case for well over a century.
“Our fundamental purpose is to help people into a home of their own and to help them save for the future. We’re owned by our members and are answerable to them. Which is why any profits we make are put immediately back to work for their benefit, whether it’s investing in excellent service, great products or our infrastructure. So, profit is obviously vitally important as it underpins our financial security, supports growth and safeguards our future for our members.”
In addition to looking after its members’ money, Nationwide also works closely with its local communities to support good causes and neighbourhood initiatives. In the last 12 months more than three quarters of Nationwide employees were involved in Citizenship activities, whilst the Building Society provided the equivalent of almost £5 million of support in the form of funding or employee volunteering.
Some of the main figures in Nationwide’s results include:
Gross mortgage lending grew by 20% to £32.6 billion, with net mortgage lending up 28% to £9.1 billion
Savings balances grew by £6.3 billion
525,000 new accounts were opened, up by 12%, with Nationwide a net gainer in current account switching, up 38%
Nationwide was ranked number one for customer service satisfaction amongst its high street peer group again this year, extending its lead to 7.7%
Underlying profit was up 9% to £1.337 billion, with statutory profit up 23% to £1.279 billion
CET1 capital ratio increased to 23.2% and Nationwide’s leverage ratio improved to 4.2%, all measures that keep the Building Society and its members’ money safe and secureClick here for Nationwide’s full results.