22 May 2015
Nationwide Building Society today announces its annual results in the strong position as the UK’s second largest savings and mortgage provider. The Society also continues to thrive in the current account market as it both attracts new customers and benefits from switchers leaving the big banks.
In addition to the ongoing strength of Nationwide’s new and existing product range, Britain’s biggest building society remains as focussed as ever on delivering fantastic service, and has today announced a three-and-a-half year lead for customer service satisfaction.
Chris Rhodes, Nationwide’s Executive Director of Retail, said: “This set of results, one of the strongest we’ve ever had, paints a picture of a fit and healthy business that has been able to push ahead on all fronts. The winning combination of competitive products and a strong reputation for customer service enables us to attract new customers, and ensure our existing customers are always offered our best deals.
“We continue to lend above our par share when it comes to mortgages, in particular first time buyers. We’ve seen an increase in our savings balances, particularly in the run up to ISA season. Our current account market share has also risen as customers both join and switch from other providers to Nationwide as the main alternative to the banks.”
Nationwide’s end of year results, which show underlying profit is up 32% at £1.216bn (2014: £924m), demonstrate that the Society is performing extremely well across all fronts. This includes:
- Nationwide became the second largest lender this year, leapfrogging competition, with mortgage balances of £152.8bn. If laid out in £20 notes it would wrap around the world nearly 28.5 times.
- £58,000 per minute was lent to first time buyers last year, equating to £3.5m per hour*.
- Around 46,000 first time buyers were able to move into a home of their own across 2014/2015. This represents 15% of market activity – above Nationwide’s par share.
- Overall mortgage lending at £27.1bn (2014: £28.1bn) - above par share (13.4%). This translates to 141,000 mortgages, equivalent to the number of people living in Middlesbrough.
- Net Lending was £7.1bn (2014: £9.9bn), at 31.2%, above par share.
- More than £1bn has been loaned to Nationwide customers through Save to Buy – an initiative launched four years ago to help first time buyers. This has resulted in more than 8,000 homes being purchased. In total, 90,000 Save to Buy Savings Accounts and ISAs opened.
- Nationwide continues to be a net beneficiary of the seven day Current Account Switching Service, accounting for an 8.4% average share of switchers across 2014/2015.
- Market share of main standard and packaged accounts increased to 6.8% (2014: 6.2%).
- Opened 469,000 new current accounts, a 9% increase in openings (2014: 431,000).
- Nationwide now has 5.7m current accounts.
- Growth supported by launch of FlexOne, Nationwide’s first youth account, offering contactless and mobile app convenience – around 69,000 accounts were opened in five months since launch.
- A Nationwide savings account was opened every 18 seconds – or 200 each hour.
- Accounted for a 14.3% share of the market change in ISA balances, well above natural share
- Around 10m customers mailed as part of Savings Promise, reminding them of their current interest rate as well as the top variable savings rates that may suit them better.
- More than 1m savings customers are signed up for SavingsWatch – a service that alerts them via text or email when their rate changes or if a new product is launched.
- Grown member deposit balances by £1.9bn, with Loyalty Saver balances up by £3.6bn, now standing at £20.7bn.
- 1.1m customers benefitting from Loyalty Saver, with more than three quarters (78%) qualifying for the top rate of interest.
- All members integrated from the regional brands (Cheshire, Derbyshire and Dunfermline) received a rate at least equal to that they were previously receiving. 150,000 integrated members benefitted from higher rates.
Customer service and branches:
- Ranked first for customer satisfaction** on high street for three-and-a-half years.
- Rated top financial services provider on high street by UK Customer Satisfaction Index.
- Investing £500m in redefining branches over next five years: new layouts enabling more conversations - underlining the Society’s confidence in the future of the branch.
- Nationwide Now - personal banking and financial consultants via high-definition video link - rolled out to more than 160 branches, with plans to install the system in up to 400 by November 2015. Breathing new life into branches, the service has a 94% customer satisfaction rate.
- Investment will also see the introduction of new technology to help members who want to serve themselves. This will increase access for members, with new locations and opening hours, in addition to a new seminar-based help and information service.
- Accounted for 2.5% of total industry complaints, despite Nationwide’s size. Of complaints escalated to the Financial Ombudsman, 91% upheld in Society’s favour, compared to the 48% industry average.
Notes to Editors:
*based on a 40hr working week.
** Source: GfK NOP’s Financial Research Survey (FRS), 12 month rolling data between April 2012 and March 2015, c60,000 adults interviewed per annum, proportion of extremely/very satisfied customers minus proportion of extremely/very/fairly dissatisfied customers summed across current account, mortgage and savings, high street peer group defined as Barclays, Halifax, HSBC, former Lloyds TSB Group (including Lloyds Bank, TSB and C&G), NatWest and Santander.