The Group has delivered an underlying profit of £147 million, and a reported statutory profit before tax of £259 million. Nationwide’s strong capital ratios have improved further in the period through prudent balance sheet management.
Graham Beale, Nationwide’s Chief Executive said:
“This is another strong performance from Nationwide, with underlying profit up 26% when compared with the first half of last year. We have maintained our strong balance sheet, excellent capital ratios and strong consumer franchise.
"Our focus on the needs of our members has resulted in us performing well in our core markets. In savings we have had a highly successful ISA season, with our market share of growth in cash ISA balances reaching 19% between April and June.
"The Champion product range remains popular with savers looking for consistently competitive rates and we have launched a new savings product, MySave Online Plus, which provides an online option for those members looking for a great rate and easy access to their money.
“In mortgages we have preserved our position, with a gross lending market share of 8.5%, and are working hard to keep the housing market moving against a backdrop of subdued conditions.
"We have simplified our product range and we have honoured our Base Mortgage Rate (BMR) pledge, with the majority of our existing mortgage customers on a rate which is capped at 2% above the Bank of England (BoE) base rate. Other mortgage customers have benefitted from our waiver of the contractual floor of 2.75% on tracker mortgages.
“We have also made strong progress towards delivery of our strategy of diversifying our income through growth across our broad range of non mortgage and savings products.
"Sales of new current accounts and credit cards increased by 61% and 88% respectively compared with the first half of last year, whilst demand from customers for equity linked alternatives to traditional savings products, coupled with innovative product development, has driven an increase in sales of investment and protection products of 14%. As a result, Group non-interest income has risen by over 20%.
“This performance provides a very firm foundation on which we will build. Despite the fragile economic environment I am confident that our long term, good value products, excellent service and strong balance sheet will hold us in good stead for the second half of the year.”
