Nationwide Building Society made a £989million profit in the first six months of 2023 thanks to higher interest rates.
Nationwide’s statutory pre-tax profit for the six months to September was up from £969million in the same period of 2022.
The building society reported an underlying pre-tax profit of £1.3billion for the six months to September, up from £980million the year before.
The group is owned by its members and has no shareholders. Nationwide paid out £344million to members in May, in the form of £100 payments to eligible customers.
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While the higher Bank of England base rate has lifted lenders’ profits in Britain, it has also pressured households already grappling with higher costs on goods as well as mortgages.
Nationwide said credit impairment charges were down at £54million from £108million in the first half of the previous year.
But the building society also warned that borrowers still face ‘higher interest rates, continued inflationary pressures and the uncertain economic outlook’.
Activity in the housing market is expected to remain subdued in the short term, Nationwide said, but lower mortgage rates could help to improve housing affordability over time.
Nationwide’s net interest margin rose to 1.66 per cent in the period, up from 1.48 per cent in the same period of the year before. The building society said this was due to rising interest rates.
Nationwide chief executive Debbie Crosbie said: ‘Nationwide is performing strongly, and our strategy is to safeguard the future strength of the society and provide a good way to bank for customers.
‘We are the main challenger to shareholder-owned banks and use our mutual status to make a meaningful impact on communities and improve society.’
