Strong financial performance
Latest half year results show strong performance in a challenging environment
22 November 2011: Nationwide is today reporting a strong performance for the half year ended 30 September 2011, in a challenging economic environment. The Group has delivered an underlying profit of £172 million, and a statutory profit before tax of £238 million.
Watch our video where Chief Executive, Graham Beale, explains more about how the Society is performing:
We've delivered an excellent performance across Nationwide's entire range of personal financial products Capital ratios continue to be amongst the best in the industry and demonstrate the Group's financial strength and robust balance sheet, with a Core Tier 1 ratio of 12.7%, and high levels of liquidity.
There has been a 48% increase in gross lending of £8.9 billion and an underlying growth in mortgage assets of £1.4 billion, funded by new savings deposits of £1.4 billion and a growth in balances of £2.4 billion, up 250% and 167% respectively. We have continued to progress our strategy of expanding our market share in other areas, most notably banking products, in order to diversify income and satisfy more of our members’ needs.
Graham Beale, Nationwide's Chief Executive said:
"The results in our first six months continue the trend established last year, with growth across all of our principal product lines. Underlying profit of £172 million is up 17% on the first half of last year.
"It is particularly pleasing to see a 48% increase in our gross mortgage lending of £8.9 billion, which demonstrates our commitment to supporting growth in the economy as well as meeting the needs of our borrowers.
"Our funding requirements have been satisfied by a 250% increase in the level of savings receipts to £1.4 billion which places Nationwide as the second largest savings provider in the UK - an endorsement of our brand and product propositions.
"We continue to act as a 'challenger' to the established banks and have seen a 24% increase in the combined sales of our current accounts, credit cards and personal loans. Furthermore we have been independently rated number one for customer service satisfaction compared with our large high street competitors.
"Market conditions are likely to remain difficult until the economy in the UK is more certain and the financial crisis in the eurozone is resolved. However, we are well placed to respond: our balance sheet is one of the strongest of its kind with a Core Tier 1 ratio of 12.7%, a core liquidity ratio of 13.5%, diverse funding platforms and high quality assets.
"Despite the uncertainties, I am confident that we can continue to invest in the business, deliver more products and services to more customers and deliver our strategic vision of being the UK’s leading provider of retail financial services."