Underlying profit for the year was £1.337 billion, an increase of 9% and statutory profit before tax was £1.279 billion, an increase of 23%. This strong financial performance has resulted in a CET1 ratio of 23.2% - giving members the peace of mind that their money is safe and secure with Nationwide. Nationwide’s leverage ratio has also improved over the last year to 4.2%.
As a mutual Nationwide aims to optimise, rather than maximise, profit, retaining sufficient earnings to support future growth, sustain strong capital ratios and to allow the Society to invest in the business to provide the services that members demand. This enables the delivery of a long term, sustainable business that operates purely in the interests of our members.
Based on the Society’s current assumptions, a level of underlying Group pre-tax profit of approximately £1 billion to £1.5 billion per annum over the medium term would optimise its ability to invest to support members’ needs while maintaining its financial strength.