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Nationwide mortgage lending share at record high | Nationwide mortgage lending share at record high |
(about 1 hour later) | |
The UK's largest building society, Nationwide, has said that its share of the mortgage market has reached a record high. | The UK's largest building society, Nationwide, has said that its share of the mortgage market has reached a record high. |
Nationwide said gross mortgage lending had risen by 17% in the year to 4 April to £21.5bn, increasing its share of the market to a record 15.1%. | Nationwide said gross mortgage lending had risen by 17% in the year to 4 April to £21.5bn, increasing its share of the market to a record 15.1%. |
Statutory profit rose by 3% to £210m, up from £203m a year earlier. | Statutory profit rose by 3% to £210m, up from £203m a year earlier. |
However, it set aside a further £53m to cover personal protection insurance claims, taking the total to £181m. | However, it set aside a further £53m to cover personal protection insurance claims, taking the total to £181m. |
Raising capital | |
Nationwide also said it had opened 365,000 new current accounts in the year, and seen a 58% increase in the number of people switching their main "banking relationship" to the building society. | Nationwide also said it had opened 365,000 new current accounts in the year, and seen a 58% increase in the number of people switching their main "banking relationship" to the building society. |
Executive director Chris Rhodes said "We opened new current accounts at a rate of one thousand per day over the last year and many of these were people switching from another provider. | |
"These results show that Nationwide really is the main challenger to the big banks." | |
While the Nationwide had good news on mortgage lending, commercial lending losses doubled to £493m, which the building society attributed to "the continuation of negative sentiment toward commercial real estate and the uncertainty surrounding the economic outlook in the UK". | |
In a conference call following the release of its results, chief executive Graham Beale announced the society's intention to raise "a few hundred million" in additional capital during the next year. | |
He said that Nationwide did not need to raise extra capital to meet regulatory demands, but was raising the money for strategic reasons. | |
"We do think it's important that we've got access to capital from a strategic viewpoint, either to respond to some shock to our system or for some inorganic opportunity or an accelerated growth plan" he said. |
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