At the time, it seemed an ambitious goal – an increase in current account market share from 6% to 10% – but Nationwide is making impressive progress.
In the three month period to end December, Nationwide’s market share of UK market share of main standard and packaged current accounts rose to 7.8% from 7.5% in the year ago period.
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In 2008, Nationwide told RBI that it was aiming for a 10% market share by 2015.
That proved to be wildly optimistic and it re-set its internal goals to achieve a 10% share by 2020.
That may yet prove to be a stretch but it is moving in the right direction and remains the big winner of the era of 7-day account switching.
In the nine month period to end December, Nationwide attracted 617,000 new current account customers, up from 570,000 in the year ago period.
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By GlobalDataOther Nationwide highlights for the nine months to end December included:
- Underlying profit rose by 2% year-on-year to £883m;
- Total deposits inched up by 1.6% y-o-y in a competitive market to £146.8bn;
Nationwide’s market share of deposits remained flat at around 10.0%.
Less positive metrics included a 2 percentage point rise in underlying cost-income ratio to 59.6%.
Nationwide’s market share of gross residential mortgage lending fell from 14.3% to 12.2%.
Nationwide Building Society Chief Executive, Joe Garner, said: “more people are switching to us than any other provider. As we anticipated, a subdued buy to let mortgage market, plus sustained competition, slowed the pace of growth in our mortgage book.
“With third quarter mortgage reservations significantly stronger than for the same period last year, we expect a strong final quarter for our gross lending.. Our capital and leverage ratios strengthened over the period, and are well ahead of regulatory requirements at 30.5% and 4.9% respectively.”
