Gross mortgage lending gains 16% at Nationwide

According to the latest report from Nationwide, gross mortgage lending increased by 16% in the nine months to 31 December 2015 to reach £23.6bn, representing a market share of 13.5%.

Related topics:  Finance
Warren Lewis
12th February 2016
Nationwide 2

Net lending rose by 18% to give the Society a market share of 22.3% - "significantly greater than our 12.0% par share of the mortgage market, driven by both strong gross lending and retention", according to the statement.  

The average LTV of new lending was consistent  with the same period last year at 69%.

Underlying profit before tax for the nine-month period was up 15% at £1,129 million.

Graham Beale, Nationwide’s Chief Executive, said: “Nationwide has continued with the success reported at the half year, with the third quarter performance demonstrating the strength of our franchise and proposition across all of our principal markets.

This success is the result of continued investment in our products, our branches, our digital channels and our services. As a building society, our primary focus is on our members, and notwithstanding the low interest rate environment, we will continue to invest in the Society and our member proposition going forward. We continue to be ranked number one for customer satisfaction amongst our high street peer group with a lead of 5.3%.

Our underlying profit increased 15% to £1,129 million and statutory profit is up 19% to £1,123 million. The financial results have benefited from our success in key markets and a strong margin, reflecting the higher market rates for mortgage loans prevailing in recent years.

These results have further enhanced our capital strength, with our Common Equity Tier 1 ratio now at 22.6%, the highest in our peer group. Our leverage ratio has also strengthened to 4.3%2 taking it to the likely maximum we will be required to hold based on our interpretation of emerging guidance. We recently announced that Joe Garner will succeed me as Chief Executive from 5 April this year.

I am proud to have led the Society for the last nine years and to have played my part in demonstrating that Nationwide is a compelling alternative to the established banks. I remain confident and excited about what Nationwide can offer in the future and I wish Joe every success.”

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