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Nationwide gross mortgage lending rises but ‘intense competition’ dents market share

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  • 10/08/2018
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Nationwide gross mortgage lending rises but ‘intense competition’ dents market share
Nationwide’s gross mortgage lending increased by 3.7% year-on year to £8.4bn in the three months to the end of June, but its share of net lending and underlying profits both fell, first quarter 2018/19 results revealed.

 

Despite “sustained, intense competition” in the market, the lender’s gross mortgage figure included £7.4bn of prime residential mortgages, up from £7.3bn, in the first three months of the lender’s reporting year, which follow the financial year.

However, the mutual cited market conditions as it reported a net lending market share of 19%, down from 21.8% in the same period of 2017.

Underlying profit dropped 10% to £270m, from £301m, which is blamed on a one-off gain of £26m from the sale of an investment in payments company Vocalink last year.

Nationwide said it helped a record 20,600 first-time buyers into a home over the period.

And also revealed gross buy-to-let mortgage lending of £1bn, up from £0.8bn.

Chief executive Joe Garner said: “As a member-owned organisation, Nationwide is committed to delivering exceptional value and service to members rather than seeking to maximise profits.

“Consumer expectations of service continue to evolve rapidly, as digital and data redefine how people manage their money.

“Therefore, we are progressing the review of our technology strategy to ensure Nationwide stays well ahead of future needs, and that we continue to pioneer legendary service in a digital age.

“Our outlook is unchanged from the full year, and we expect the economy to grow at a modest pace over the next 12 months.

“We are observing consumers adapting their behaviours in response to the pressure on disposable income.

“The housing market looks set to remain relatively subdued with house prices broadly flat in 2018.

“Against this background, we also expect intense competition to persist in our core markets.”

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