The mutual also maintained its market share of 12.4 per cent.
The average loan to value tier for lending to new borrowers was flat at 69 per cent.
Mortgage balances rose to £203.6bn, up from £198.1bn as of 4 April 2022, which it said was in line with market growth.
Nationwide helped 27,500 first-time buyers during the period, similar to the same time last year when it lent to 30,000 new homeowners.
Its underlying profit increased to £980m, up from £850m last year while statutory profit rose from £853m to £969m, which it attributed to income growth.
Rising interest rates resulted in the mutual’s underlying income increasing from £1.89bn to £2.19bn.
Its net interest margin improved to 1.48 per cent, up from 1.24 per cent last year.
Nationwide’s credit impairment charges were higher at £108m, compared to a release of £34m last year. It said while there was no evidence of a “significant increase in arrears”, higher interest rates, inflation and economic uncertainty could be risks.
Its profit after tax came to £728m, up from £685m the year before.
Mortgage activity set to reduce
Looking ahead, it said the economic picture was uncertain as borrowers’ household finances could be put under pressure. Nationwide said this could lead to lower levels of activity in the mortgage market in the second half of its financial year.
Nationwide said its borrowers were “relatively well placed” to withstand challenges in the short to medium-term because of the proportion of borrowers on fixed rates, and few spending a larger share of their income on debt repayments.
It added: “However, the transition to higher interest payments is a challenge for households as they adjust their expenditure priorities. We will continue to support those borrowers who face payment difficulties.”
Debbie Crosbie (pictured), chief executive of Nationwide Building Society, said: “Nationwide’s focus is on supporting members, today and for the long term.
“Our half year performance means we can invest more in new ways to support members; we have increased the current account switcher incentive and extended our support for members facing increases in the cost of living, including practical support provided in our branches, a dedicated telephone hotline and an online support hub.”
She added: “Nationwide is not immune to the current economic challenges and it’s important to maintain financial strength. Our strategy is focused on growing the membership base, increasing value to members, and becoming simpler and more efficient in the way we operate.
“This will ensure the society’s future strength and ability to continue to support members and wider society.”
