20 November 2015
Competitive products and table-topping customer service produce standout results
Nationwide Building Society today announces its interim results, demonstrating that the UK’s leading mutual continues to offer competitive products at the same time as delivering outstanding customer service.
Summary of results
- Nationwide helped 25,700 first time buyers onto the property ladder during the first half of 2015/16 - an 8% increase on the same period of 2014/15. This represents a 15.8% share by volume and a 16.1% share by value across the market.
- First time buyers have accounted for 50% of the Society’s house purchase loans, against a market average of 46% (CML).
- Gross mortgage lending rose by 14% to £14.9 billion (H1 2014/15: £13.1 billion) representing a 13.2% share of the market.
- Net lending was also up 14% at £4.1 billion (H1 2014/15: £3.6 billion) – a 21.2% market share.
- To broaden support for the market, Nationwide launched a range of 5% deposit mortgages.
- Nationwide will take part in the Government’s Help to Buy ISA initiative from 1 December 2015. The Society has also continued to participate in the Help to Buy shared equity scheme, in which it accounts for over a third of all cases.
- The Society continues to reward existing customers through the Loyalty Rate Mortgages initiative.
- Nationwide continues to be one of the leading providers of loans to the buy to let sector through The Mortgage Works (TMW). Over the first half of the year, TMW gross advances accounted for £2.9 billion of our total mortgage lending, up 33% and representing a 15% share of gross buy to let lending in the UK.
- Nationwide continues to be a net beneficiary of the seven day Current Account Switch Service, accounting for 9.8% of all switchers over the first half of the year.
- Nationwide opened over a quarter of a million new current accounts during the past six months – a 13% increase on the same period last year.
- Nationwide now has nearly six million current accounts. Market share of main and standard packaged accounts now stands at 6.9%, and market share of all accounts is 8.1%.
- FlexOne, Nationwide’s current account aimed at the youth market, has accounted for 18% of all youth account openings over the last six months.
- In terms of Nationwide’s award winning* packaged account, 367,000 FlexPlus accounts have been opened as of 30 September 2015.
- Around 888,000 savings accounts opened in the first half of 2015/16.
- Savings balances increased by £2.6 billion.
- Accounted for a 33% share of the 2015-16 ISA balance growth over the financial year.
- 94,000 Regular Saver ISA accounts were opened in the four months it was available.
- 2.2 billion was deposited into Loyalty Bond during the four months it was on sale.
- Around 1.5 million customers currently subscribe to the SavingsWatch alert service.
Customer service and branches:
- Continually ranked first for customer satisfaction** on high street, with our lead over our nearest competitor now standing at 4.1%.
- Rated top financial services provider on high street by UK Customer Satisfaction Index, the only high street financial services provider in the top 10 (out of 225 organisations).
- Accounted for 2.1% of total industry complaints, despite Nationwide’s size. Of complaints escalated to the Financial Ombudsman, 78% upheld in Society’s favour, compared to the 43% industry average.
- Positive feedback from members with 99% satisfaction rates for the last six months.
- Opened a branch in London Victoria, the first of three new branches in London.
- Rolling out of the Society’s Nationwide Now technology in around 400 locations by the end of 2015 (currently in 370 branches).
The strength of the results reinforces Nationwide’s position as the UK’s second largest provider of mortgages and savings and again highlights the Society’s commitment to homeowners and savers.
A growing number of customers are attracted to Nationwide’s current account offering, with around one in ten current account switchers moving to the mutual during the first half of 2015/16.
While the quality of products continues to strengthen, customer service also remains a primary focus for the Society. Despite its size and scale, Nationwide accounts for just 2.1% of all industry complaints.
Chris Rhodes, Nationwide’s Executive Director of Retail, said: “What is clear from these strong results is that Nationwide has continued to marry competitive products and leading customer service to maintain its position as the leading alternative to the banks.
“This is borne out by the numbers, which show that not only do many people see the Society as the number one option for their current account, but they also view Nationwide as the home for their savings and the organisation which can get them into their own home. We hope that we have demonstrated that there’s never been a better time to join us – at whatever stage of life you are”.
Nationwide’s Interim Results, which show underlying profit was up 27% at £801 million, demonstrate that the Society is performing extremely well across all fronts.