Nationwide is to give back a record amount to its members, following strong financial results and profits of £2.2bn. This includes rewarding members with over £1bn through better rates and incentives.
Nationwide says that sharing its profit through the Nationwide Fairer Share Payment, and launching the Nationwide Fairer Share Bond, highlights its financial strength and mutual difference to support members in ways others can’t.
“Nationwide’s purpose is to offer banking, but fairer, more rewarding, and for the good of society. That’s why we have introduced the Nationwide Fairer Share. This will see us return even more value back to members. We are able to do this because of our financial strength and the fact we’re a building society, not a bank. Our profit is used for our members’ benefit. It’s part of our enduring commitment to rewarding our members, said Debbie Crosbie, CEO, Nationwide Building Society.
Nationwide Fairer Share
The Nationwide Fairer Share Paymentwill see members with the deepest relationships rewarded with £100. It will share £340m with eligible members holding both a qualifying current account and a qualifying savings or mortgage product. The payment to eligible members will automatically be made into their Nationwide current account in June. This is subject to the account being open on 31 March 2023. The society says it intends to make the payment annually. That is subject to the payments not being detrimental to the society’s financial strength.
The Nationwide Fairer Share Bond is launched offering a competitive rate of 4.75%. It is available to all the society’s 16 million members. The two-year bond can be opened in branch, via the Banking App or Internet Bank.
Nationwide gave over £1bn billion back to members in the last financial year through better rates and incentives. This led to a growth in deposits, with deposits growing by £9.1bn.
Nationwide fiscal 2023: underlying profit +39%
Underlying profit increases to £2.23bn (2022: £1.6bn) for the 12 months to 4 April 2023. Statutory profit increases to £2.29bn (2022: £1.59bn) driven by income growth.
Rising interest rates boosts growth in total underlying income by 21% to £4.67bn (2022: £3,867m). The net interest margin improves by 31 basis points to 1.57% (2022: 1.26%).
Deposit market share grows to 9.6% (2022: 9.4%) with £9.1bn balance growth (2022: £7.7bn). The Nationwide ends fiscal 2023 with a current account market share of 10.4% (2022: 10.3%).
Crosbie added: “We have delivered a strong financial performance by providing banking that is fairer, more rewarding and for the good of society.”