Nationwide’s profits stable despite Covid

Na t i o nw i d e Building Society has seen half-year profits hold up despite putting aside £139 million for loan losses due to the pandemic.

The mutual lender reported underlying pretax profits of £305m for the six months to September 30, down slightly from £307m a year earlier.

On a reported basis, half-year pre-tax profits rose 17% to £361m.

But the group booked a £139m charge for loans that may not be repaid due to the coronavirus crisis and warned the outlook for the wider economy remains “unpredictable”.

Jo e G a r n e r, chief executive of Nationwide, said: “Looking ahead, as and when government support winds down, it is clear that many more people are likely to lose jobs and family finances will come under strain.”

He added: “It is very hard to predict what will happen to the economy, jobs and the housing market in the near future as a result of the pandemic and Brexit.”