CML 2010 annual statistics placed Nationwide in fifth out of the UK’s biggest mortgage lenders by market share. It lent £12.2bn in 2010 giving it a 9% market share, but third by total mortgage balances outstanding.
Nationwide’s full-year results report a year-on-year uplift in mortgage lending of £8.9bn, putting it on course to leapfrog last year’s results, although it’s still too soon to call whether the mutual has jumped Barclays or Royal Bank of Scotland in fourth and fifth place.
Nationwide chief executive said it is particularly “pleasing” to see the leap in mortgage lending figures and said the funding had come from a 250% increase in the level of savings receipts to £1.4 bn, making Nationwide the second largest savings provider in the UK.
“We continue to act as a ‘challenger’ to the established banks and have seen a 24% increase in the combined sales of our current accounts, credit cards and personal loans. Furthermore we have been independently rated number one for customer service satisfaction compared with our large high street competitors,” said Beale.
Beale said capital ratios continue to be amongst the best in the industry and demonstrate the group’s financial strength and robust balance sheet, with a Core Tier 1 ratio of 12.7%, and high levels of liquidity.
The group delivered an underlying profit of £172m, and a statutory profit before tax of £238m.
Graham Beale, Nationwide’s chief executive, said: “Underlying profit of £172m is up 17% on the H1 last year. Market conditions are likely to remain difficult until the economy in the UK is more certain and the financial crisis in the Eurozone is resolved.”
Nationwide went on to predict rates would stay at 0.5% until 2013 and the housing market would remain “muted.”
“We expect buyer activity to continue to be relatively subdued, with the potential to decline further should the labour market situation deteriorate markedly, or if strains in the financial system intensify and impair the flow of credit to the wider economy,” he said.
However, Nationwide said it does not expect large price falls given that mortgage arrears and distressed sales are likely to remain low, supported by a prolonged period of low interest rates.
The Nationwide added: “We will deliver more value to more customers, diversify our income and continue our progress towards becoming the UK’s leading provider of retail financial services.”
Nationwide went on to predict rates would stay at 0.5% until 2013 and the housing market remain “muted.”
“We expect buyer activity to continue to be relatively subdued, with the potential to decline further should the labour market situation deteriorate markedly, or if strains in the financial system intensify and impair the flow of credit to the wider economy,” it said.
However, Nationwide said it does not expect large price falls given that mortgage arrears and distressed sales are likely to remain low, supported by a prolonged period of low interest rates.
The Nationwide added: “We will deliver more value to more customers, diversify our income and continue our progress towards becoming the UK’s leading provider of retail financial services.”
