Nationwide half year results

Strong mortgage lending and sales of current accounts, credit cards and personal loans


27 November 2012: Nationwide’s latest half year financial results for 2012/13 reveal how the Society is continuing to grow and serve its members.

Mortgages and First Time Buyers

Gross residential mortgage lending was up 15% to £10.2 billion and net lending was more than double the equivalent lending last year. The first half of the year was our highest six month mortgage lending period for four years. Over this period we have helped 20,000 borrowers buy their first home, almost twice as many as during the first six months of last year.

Given its size, Nationwide would be expected to lend to around 10% of all first time buyers.  These latest figures show that the Society has lent to almost twice that amount, by offering mortgages to more than 18%* of all first time buyers - a clear indication that we are doing all we can to help people get onto the housing ladder.

We also maintained our BMR (Base Mortgage Rate) pledge, creating in the region of £390 million of benefit for our members, worth on average £1,000 per account, per year.

Profit levels

We have seen a drop in profit primarily as a result of PPI claims and the ongoing decline of the commercial property sector. Where we have felt the impact of those impairment charges is in underlying profit, which is down 17% to £151 million. Statutory profit is also down at £124 million compared with £238 million last year, reflecting the fall in underlying profit and a large negative swing in fair value adjustments.


In a low interest rate environment, savers continue to face an extended period of low returns on their deposits. We have continued to focus on rewarding loyal customers with a variety of products including Flexclusive ISA and Flexclusive Regular Saver accounts for those customers who have a main current account, a Loyalty Bond for existing savers and, most recently, a Loyalty Saver account which pays a higher rate of interest dependent on the length of relationship that the customer has had with the Society.

Challenging the banks

We continue to challenge the banks with strong sales of current accounts, credit cards and personal loans. Our market share of main current accounts is up to 7.1%. We now have 1.2 million active credit card accounts and new loan sales were up 13% on last year.

Future strength

We continue to demonstrate a strong and stable balance sheet with a Core Tier 1 Capital ratio of 12.4% and a managed reduction of liquidity balances and lowering of core liquidity ratio to 11.3%.

We will continue to focus on the residential mortgage market and support savers where we can as well as developing our banking product suite, which was kick started by the launch on 26 November 2012 of FlexDirect, our first new current account in over 25 years.

Technological developments have also contributed to our strength in the financial market place with the launch of the new Internet Bank last year and the recent release of the mobile banking app.

Our aim of being on the side of our customers will remain a driving force behind the next six months. Customer service is an absolute priority for Nationwide and we will continue to deliver a service that is demonstrably better than that of our high street competitors.

To read the full half year results please click here


*Source for market size is CML, which shows that for H1 the First Time Buyer market was £13.5bn. 


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