Over the three months to June, Nationwide Building Society has seen statutory profits increase 141 per cent compared to the same period last year, hitting £253m despite gross mortgage lending dropping to £5.8bn from £6.4bn a year ago.
The interim statement, published today (18 August) told of “two significant market developments during the quarter which have impacted customer behaviour,” namely the change in Isa rules in July and the introduction of the Mortgage Market Review from April, which led to a “period of adjustment for the industry”.
The society’s market share of gross and net lending were 11.4 per cent and 25.4 per cent respectively, while the group accounts for 15 per cent of all new first time buyer mortgages.
Average loan-to-value of the residential mortgage book by volume reduced to 46 per cent from 48 per cent in April, while the average LTV of new business by volume for the three months to the end of June 2014 remained static at 67 per cent.
Member deposits increased by £1.5bn to £132bn and the society’s market share of the movement in savings deposits was 9.4 per cent.
Graham Beale, Nationwide’s chief executive, said that as a result of strong performance the group had continued to strengthen its capital position with our common equity tier 1 ratio now standing at 16.3 per cent and leverage ratio increasing to 3.7 per cent.
He said: “Nationwide has continued to help members to save, buy their own homes and manage their money in a way that suits their needs.
“As a result, member deposits increased by £1.5bn, we grew our share of current accounts to 6.4 per cent and we supported the housing market, helping over 23,000 people to buy their home, with gross mortgage lending of £5.8bn.”
