Nationwide announces 70% profit increase as it faces "radically different" economic outlook

A UK building society has reported that its profits increased by nearly 70 per cent across the past year.

Nationwide Building Society announced today that its underlying profits before tax were £790m, up by 68.4 per cent from last year’s £469m.

It said that the profit increase was due to its focus on preserving its capital position and supporting its members.

The company also saw an increase in income, climbing 7.8 per cent from £3,046m in 2020 to £3,285 this year.

However, it said that it is facing a “radically different” economic outlook compared to 18 months ago, and that although it has grounds for optimism, there is “continued uncertainty”.

Joe Garner, chief executive at Nationwide Building Society, said: “This year has shown the financial strength of the building society mutual model.

“It has been a tough year, one that tested the resilience of people and businesses. Given the profound uncertainties we faced, we focused on the things that were most important in times of crisis: namely to keep our people and members safe and our society strong.

“We entered the crisis in a position of financial strength and, in the face of a highly uncertain environment, we took steps to protect our finances.

“This meant we could stand by our members, colleagues and communities when they needed us most.

“From payment holidays and socially distanced services, to personal assistance for the most vulnerable and remote working for all our office employees, we responded with flexibility and humanity.

“We also continued to help members achieve their financial goals. We supported homebuyers by lending responsibly, including at 90 per cent LTV, and more recently at 95 per cent LTV.

“Later in the year, we were able to start giving more value back to savers again through innovative products that reward membership such as our market leading Member Exclusive Fixed Rate ISA.

“We finished the year financially and operationally strong, and well-placed to support our members in future.”