Nationwide profits jump 30% after 'outstanding' year

Nationwide Building Society has posted a 30 per cent jump in annual profits after an "outstanding" year that saw it complete the takeover of Virgin Money.

- HOLLY WILLIAMS

The mutual reported pre-tax profits of £2.3bn for the year to 31 March, up from £1.8bn the previous year, which came despite it handing out a record £2.8bn in value to members, including £1bn in rewards.

Nationwide announced yesterday it would distribute its third Fairer Share payout to eligible members next month, working out at £100 each. Last year, it paid out £385m to 3.85 million customers, while members also benefited from a one-off £615m reward as part of the “The Big Nationwide Thank You”.

On an underlying basis, pre-tax profits fell to £1.9bn from £2bn as Nationwide said it focused on offering competitive interest rates to customers.