Nationwide Building Society has reported a decline in its annual pre-tax profits, which fell to £1.49 billion for the year ending March, compared to £2.3 billion in the previous year. The drop comes as the mutual integrates its acquisition of Virgin Money and prepares to distribute approximately £440 million to its members next month.
Profit Decline and One-Off Gains
The building society attributed last year's higher earnings to a one-off gain from the Virgin Money acquisition, which is currently being integrated into the group. The latest results also incorporate the cost of the fourth 'Fairer Share' payment, a profit-sharing initiative that will see around 4.4 million eligible members receive a £100 bonus in June.
Mortgage Lending and Market Position
Net mortgage lending fell to £10.3 billion from £15.9 billion the prior year, though Nationwide stated it remained a market leader. The previous financial year included a surge in home buyers completing purchases ahead of April 2025 stamp duty relief changes, which boosted lending figures.
Deposits and Savings Growth
Strong demand for Individual Savings Accounts (Isas) and the opening of approximately one million new personal current accounts helped lift total customer deposits by £10.1 billion during the year. This growth underscores the society's ability to attract savings despite a competitive market.
The 'Fairer Share' payment reflects Nationwide's commitment to returning profits to members, with the latest payout expected to benefit millions of customers. The building society continues to navigate a challenging economic environment while maintaining its focus on customer value.
