According to its half-year report, its gross market share contracted from 11.8 per cent in the first half of the year in 2022 to 10.5 per cent in the same period this year.
The report added that the average loan to value of new residential mortgages came to 71 per cent, up from 69 per cent in first half of last year.
The firm added that mortgage balances came to £202.3bn, an increase from £201.7bn as of 4 April 2023.
From an arrears perspective, the proportion of residential mortgages in more than three months in arrears rose to 0.38 per cent, a rise from 0.32 per cent as of 4 April 2023.
Underlying profit for the year came to around £1.3bn, which it attributed to income growth and a reduction in charges for credit impairments. This was partially offset by higher costs.
Natonwide: Base rate near peak
Looking ahead, the mutual said that the bank rate was “at or close to its peak” but there were “significant risks in both directions driven by the ongoing uncertainty surrounding demand prospects and the supply capacity of the economy”.
It added: “The housing market has slowed and house prices have edged lower as a result of the higher interest rate environment. While activity is anticipated to remain subdued in the short term, income growth and lower fixed rate mortgage rates should help to improve housing affordability over time.
“Household deposit growth has also slowed, mirroring the decline in mortgage lending. However, there has been significant movement within the deposits market, stimulated by the higher rates available, with customers transferring money from current accounts and instant access savings into fixed rate savings.”
Nationwide said that the credit quality of its lending portfolios was “strong” and its capital resources were “robust”.
‘Main challenger to shareholder-owned banks’
Debbie Crosbie (pictured), chief executive of Nationwide Building Society, said: “We provide customers with great value products, choice in the way they bank with us, and the best possible service.
“As a result, we have grown our deposit and mortgage balances, and our financial strength means we can invest in even better products and services, and increase value for our members.”
She continued: “Nationwide is performing strongly, and our strategy is to safeguard the future strength of the society and provide a good way to bank for customers.
“We are the main challenger to shareholder-owned banks and use our mutual status to make a meaningful impact on communities and improve society. Our rebrand in October 2023 was the most significant in 36 years and will help us to build stronger relationships with our customers, now and in the future.”