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Nationwide takes IT investment hit as profits fall

by Sarah Dunsby
8th Feb 19 8:46 am

Nationwide Building Society has reported their statutory profit in the nine months to 31 December, dropped 20% to £703m.

The Building Society said £167m were “asset write-offs and additional technology spends,” underlying profits were down 21% to £691m.

Nationwide announced in 2018 to spend £1.3bn on technology investment to take on rivals.

Joe Garner, chief executive of Nationwide said Friday, “In September we took the conscious decision to increase significantly our investment in the Society in the full knowledge that it would impact profitability in the short to medium-term but would be of long-term benefit to our members.

“This investment is to ensure we can continue to meet our members’ changing needs in an increasingly digital future.

“At the same time, consistent with member feedback, we remain committed to and are investing in our presence on the high street.”

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