Nationwide Building Society annual profits have tumbled by nearly a fifth due to ramping up their spending on IT, taking a hit of £227m over their technology assets.
The building society reported a 19% fall in underlying profits to £788m in the year to 4 April.
Due to technology asset write-offs and IT investment the mutual was impacted by £227m, they announced in 2018 to spend £1.3bn over the next five years.
On a statutory basis pre-tax profits dropped to £833m compared with £977m the year before.
Joe Garner, chief executive of Nationwide said, “During the year, we also announced a significant boost in our technology investment over five years to ensure we continue to excel on service.
“These were conscious decisions we were able to make as a building society.
“As we expected, they have had an impact on profits in the short term, but these choices are in the long-term interests of our members.”