Nationwide momentum continues

The nation’s biggest building society said its third quarter performance demonstrated the strength of its franchise and proposition across all of its principal markets.

Nationwide said its gross and net residential mortgage lending increased 16 per cent and 18 per cent respectively. It also said growth in member deposits increased 29 per cent along with a 13 per cent increase in new current account openings.

The building society said its underlying profit increased 15 per cent to £1.13bn and statutory profit was up 19 per cent to £1.12bn.

Graham Beale, chief executive of Nationwide, said: “This success is the result of continued investment in our products, our branches, our digital channels and our services.

“As a building society, our primary focus is on our members, and notwithstanding the continued low interest rate environment, we will continue to invest in the society and our member proposition going forward.”

He added: “The financial results have benefited from our success in key markets and a strong margin, reflecting the higher market rates for mortgage loans prevailing in recent years.”

Mr Beale, who has been with Nationwide since 2007, will be replaced as chief executive by Joe Garner, currently boss of BT Openreach, from April 5.

The outgoing chief executive said: “I am proud to have led the society for the last nine years and to have played my part in demonstrating that Nationwide is a compelling alternative to the established banks.

“I remain confident and excited about what Nationwide can offer in the future and I wish Joe every success.”