Bigger market share fuels profit growth at Nationwide
NATIONWIDE building society, in the throes of f i nal l y a b s o r b i ng t he Dunfermline in Scotland, has reported strong growth as it takes market share from the banks.
The UK’s biggest society, in an antidote to the financial woes of the mutuallyowned Co-operative, raised underlying profit by 56% to £475 million, on an 18% rise in total income to £2.52 billion, in the year to April 4. However, commercial property, the downfall of the Dunfermline, undermined profits as bad debt provisions doubled to £493m.
Nationwide this month embarked on consultation over the closure of around half of the 32 Dunfermline branches and the rebranding of the survivors.
It has claimed a record share of the mortgagemarket, increasing gross lending by 17% to £21.5bn, accounting for 15.1% of all UKresidential lending. It provided loans to more than 42,000 first-time buyers, almost one in five of the market total, and a 75% rise on last year.
Nationwide also said 123,000 customers switched their main banking relationship to the society, a record in its 26-year history of offering current accounts.
Executive director Chris Rhodes said: “Dissatisfaction with the big banks is leading people to vote with their feet. We opened new current accounts at a rate of 1000 per day over the last year.”
The society’s market share rose from 5.1% to 5.7%.
Nationwide’s current account base rose to 5.2 million and its market share of main and packaged accounts is 5.7%, up from 5.1% in 2012. STICKING with the Scottish Engineering event, after-dinner speaker Bill Copeland had the topic of bankers’ bonuses in his sights as he entertained the 450-plus guests.
Mr Copeland, a former criminal defence lawyer, said he was in full Highland regalia when he spoke at the Lord Provost of Edinburgh’s Burns Supper in January.
“I was wearing the new Bank of Scotland tartan,” Mr Copeland said, “the hunting bonus!”