Nationwide Building Society’s profits jump

Lending giant Nationwide Building Society has enjoyed a leap in profits but cautioned that arrears could rise as customers face “affordability pressures” amid the cost-ofliving squeeze.

Britain’s biggest building society saw its underlying pretax profits increase to £980 million in the half-year to September 30, up from £850m the previous year. Higher interest rates - which have particularly affected the mortgage market in recent months - pushed up the lender’s total income by £296m over the period.

Nationwide said it was ramping up its credit impairment charges in anticipation of future increases in arrears as the economy worsens and people face affordability pressures. However, the society, which rescued the Dunfermline Building Society during the financial crisis, has not yet seen a significant increase in customers missing payments because many of its borrowers are shielded from the effects of rising rates.