Profits at Nationwide Building Society up 117%

Nationwide Building Society, Britain's biggest customer-owned lender, more than doubled its first-quarter profit, it said this morning. Underlying profit of £263 million (€327 million) in the three months to June 30th was up 117 per cent against the same period last year.

The mutual society said its share of current accounts rose slightly to 6.4 per cent from 6.2 per cent, while member deposits increased by £1.5 billion to £132 billion. Gross mortgage lending fell to £5.8 billion from £6.4 billion pounds a year earlier.

The building society has a direct savings operation in Ireland.

Nationwide is seeking to challenge the dominance of Britain's five biggest banks, wooing customers disillusioned by scandals including the mis-selling of loan insurance and the rigging of benchmark interest rates. However, the big five of Lloyds Banking Group, Royal Bank of Scotland, Barclays, HSBC and Santander UK continue to control about 80 per cent of the market for personal current accounts.

Nationwide said its leverage ratio rose to 3.7 per cent, ahead of a target set by Britain’s financial regulator.

Reuters