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Nationwide profits up, despite mortgage lending falls

Nationwide profits up, despite mortgage lending falls

Nationwide has seen underlying profit increase 32 per cent to £1.21bn, up from £924m the previous year.

The lender’s 2014/15 full year results, published today (22 April) confirmed it as the second largest mortgage provider, with a market share of 13.4 per cent, helping almost 46,000 first-time buyers.

However, gross mortgage lending for the year stood at £27.1bn, a slight fall from the £28.1bn recorded last year. Net lending was also down to £7.1bn from £9.9bn, a market share of 31.2 per cent, falling from 70.8 per cent.

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Average loan-to-value in the year was 66 per cent, down on last year’s 69 per cent, as the society aligned to a new ‘post crisis’ risk appetite, according to the statement.

The results also saw Nationwide promise to increase its number of mortgage consultants by 24 per cent.

As part of an annual investment programme for the next five years, the society will continue to invest in systems and infrastructure to ensure members can manage their money wherever and however they choose to do so, focusing on the next generation of online and mobile services.

The results also revealed that Nationwide’s chief executive Graham Beale will retire around the annual general meeting in July 2016. The process will now begin to identify a successor, something that will take place over the coming months.

Mr Beale stated: “Nationwide is in great shape and is demonstrating how a mutual building society can make a real and refreshing difference in the financial services sector.

“Succession of leadership is best dealt with from a position of strength and hence the time has come for the society to identify and appoint its next chief executive.”

Nationwide’s chairman Geoffrey Howe added that Mr Beale has led the society safely through the worst financial crisis in living memory and at the same time created a truly modern mutual.

“This is the right time to plan for the future and in the meantime Graham will continue to lead the society and will remain, as always, focused on the job in hand.”

peter.walker@ft.com