Nationwide building society: Profits hit by fall in buy-to-let mortgage loans


NationwideGETTY — Reservoir

Nationwide chief executive Joe Garner urges banks to be alert at the of possible slowdown

Its net mortgage lending was down from £3.5billion the aforementioned year to £2.4billion as buy-to-let mortgage sales slowed walk stamp duty hikes and changes to its own underwriting criteria.

Profit demolish from to £322million from £401million in 2016, when it tidy up a £100million one-off gain following the sale of its investment in Visa Europe.

Reduction losses on bad loans rose by £20million to £36million.

Chief official Joe Garner said profits were «comfortably within our strategic quarry range» as it invests in improving services and benefits for customers.

It opened 202,000 new in circulation accounts, up 17 per cent on last year, as well as attracting 22.4 per cent of all widespread account switchers, for a 7.7 per cent market share.

NationwideGETTY — Horses

Nationwide’s first-quarter profit fell by nearly a fifth

It will be distinguished for lenders to balance carefully credit supply with affordability

Nationwide chief management Joe Garner

Garner said: «Value and outstanding service has enabled us to draw more customers. We are seeing customers voting with their feet when they see value and accommodation.»

Nationwide expects the UK economy to «slow a little further» this year as household budgets are put the squeeze oned by rising inflation.

Garner urged banks and building societies to «deliberate carefully» the way they lend to consumers ahead of a potential slowdown, but cautioned against «pulling credit too quickly».

He said: «Although the public has become itty-bitty optimistic about the outlook for the economy generally, research shows that the number of consumers expect Brexit to leave their ability to access probity unchanged.

«It will be important for lenders to balance carefully credit cache with affordability as we seek to support the long-term needs of consumers in a stable way through any potential economic slowdown ahead.»

He said that Nationwide desire continue to invest in products and improvements in service despite competition and a low captivate environment «maintaining pressure on margins».

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