Nationwide net income up to £1.7bn says half year report

Nationwide Building Society (NBS) has unveiled its half year report.

According to NBS, underlying profit increased to £850m (H1 2020: £305m) and statutory profit increased to £853m (H1 2020: £361m). This was fueled by a growth in net interest income to £1,7bn (H1 2020: £1,448m), with higher margins on mortgages as NBS continued to lend in the early stages of the pandemic.

The building society also lent over £5bn to first time buyers, supported by the new Helping Hand mortgage and return to 95 per cent loan to value lending.

The finance provider also stated a net release of £34m of credit provisions (H1 2020: charge of £139m) as the economic outlook improved, while retaining provisions to reflect current uncertainty.

Furthermore, there was a £133m increase in other income, reflecting higher income from banking products and supported by gains from investments.

Joe Garner, chief executive, Nationwide Building Society, said: “Early in the pandemic we made decisions to stand by our members and to protect our financial strength. This year we continued to support our members and have delivered a very strong half year performance, with capital reaching an all-time high.

“Over the last six months we have focused on providing highly competitive products for our mortgage and savings members. These have been very popular, resulting in a successful ISA season, increased deposits, higher mortgage lending, and a larger share of the current account market.

“Our success is a testament to the strength of our mutual business model, to the hard work of our colleagues, and to the value we provide to our members.”