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Nationwide profits take a hit amid pandemic

by LLB Editor
20th Nov 20 10:53 am

Nationwide, the UK’s largest building society, has reported underlying profit in the six months to September 30 of £305 million, slightly down from £307 million last year.

Net lending dropped to £1.6 billion from £3 billion last year, supported by demand for buy-to-let mortgages.

Joe Garner, chief executive, said that the mutual had accepted 246,000 payment holidays on mortgages, granted 91,000 payment breaks or interest-free periods on loans, credit cards and overdrafts and frozen repossessions.

Its decision to reduce savings rates cost customers £140 million.

Garner said: “Looking ahead, as and when government support winds down, it is clear that many more people are likely to lose their jobs and family finances will come under strain.”

Garner added: “It is very hard to predict what will happen to the economy, jobs and the housing market in the near future as a result of the pandemic and Brexit.

“The scale of interventions to support people and jobs to date has been extensive and will limit the long-term damage, but the outlook remains unpredictable.”

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