Nationwide hails '˜strong' trading as profits cool

Nationwide has reported falling profits amid what it called a period of 'sustained economic uncertainty' and rock-bottom interest rates.

The Nationwide said trading remained 'strong'. Picture: Greg Macvean

The building society said statutory pre-tax profits in the first nine months of the year dropped 16 per cent to £946 million.

It expects UK economic growth to slow over the next two years and ultra-low interest rates to “put pressure on margins and profit”, with chief executive Joe Garner flagging “sustained economic uncertainty”. The Bank of England halved rates to 0.25 per cent and unleashed a mammoth economy-boosting package in August to see off the threat of an expected sharp slowdown.

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But Garner said trading in the third quarter remained “strong” and that gross mortgage lending increased by 11 per cent to £26.2 billion in the nine months to 31 December, resulting in market share of 14.3 per cent.

Deposit balances increased by £6.4bn and it opened 570,0001 current accounts.
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