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Gloucestershire Business News

Nationwide profits jump 13 per cent

Britain's biggest building society has revealed a jump in profits thanks to higher interest rates.

Nationwide reported a 13.5 per cent rise in pre-tax profits to £969m for the six months to the end of September.

However the lender has warned of a drop in mortgage demand and a rise in bad loans.

A statement published with its results read: "The economic outlook remains highly uncertain, with increases in the cost of living and higher interest rates for borrowers putting further pressure on household finances and reducing consumer confidence.

"This is expected to lead to lower mortgage market activity in the second half of the year."

The bank said it had set aside £108m for credit losses, compared to a release of £34m last year.

Chris Rhodes, Nationwide's chief financial officer, said: 'The sustained strength of our finances will allow us to support our members through a highly uncertain period and significant cost-of-living increases.

'We have continued to support our members' borrowing and savings needs during the period, and as a result have delivered growth in our mortgage and deposit balances.

'Due to the highly uncertain economic outlook, it is important that we maintain our financial strength and continue to focus on efficiency.

'This will mean we can face the future with confidence and continue to support our members.'

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