Nationwide’s incomes boosted by higher interest rates
Nationwide Building Society today posted a more than 13 per cent uptick in its underlying profits after its incomes were boosted by higher interest rates.
The Swindon headquartered building society saw its pre-tax profits for the six months ending on 30 September 2022 increase 13.6 per cent to 969m.
The uptick came as Nationwide’s net interest income increased almost 17 per cent to £2.055bn, due to increases in the bank base rate.
The higher interest incomes offset lower earnings from the rest of Nationwide’s business, which fell 28 per cent to £135m, in the face of higher costs.
The mutual noted its overall costs increased 5.7 per cent, to £1.083bn, due to the impacts of inflation.
Nationwide’s chief executive Debbie Crossie said: “Our half year performance means we can invest more in new ways to support members”.
The building society saw its total assets increase 2.8 per cent over the past six months, to £279.9bn, as continued growth in the mortgage market saw its mortgage balances increase 2.8 per cent to £203.6bn.
Nationwide noted it lent out £19.7bn worth of residential mortgages over the period, in upping market share to 12.4 per cent of the overall market. The firm’s consumer bank balances remained stable at £4.6bn.