As expected, we have seen some volatility in financial markets following the decision in the Referendum for a British exit from the EU, and the announcement by the Prime Minister, David Cameron, to step down over coming months. The Governor of the Bank of England stated that whilst inevitably there will be a period of uncertainty and adjustment following this result, the Treasury, Bank of England and the Financial Services Industry is well prepared for this.
Now the outcome of the vote has been announced, the Government will need to take some time to plan the next steps, so we do not expect any immediate changes which will directly impact the Society.
As the leading UK building society, and as one of the safest and strongest financial services organisations in the country, the direct impact of the vote to leave the EU on Nationwide will be limited, and in the immediate and short-term nothing will change. What also won’t change is our commitment to keeping our members’ money as safe with us today and in the future as it has always been. Our priority, is to make sure that Nationwide continues to provide stability and security for members’ money for generations to come.
Our most recent results underline this position, including:
- Showing that we are one of the most strongly capitalised financial services organisations in the UK (CET1 ratio of 23.2% and Leverage Ratio of 4.2%)
- Profits of well over a billion pounds
Any Nationwide member with savings of up to £75,000 (and £150,000 for joint account savers) is protected by the Financial Services Compensation Scheme. As you would expect, we will, of course, continue to work closely with our regulators and the authorities to work through the implications of the vote, and keep you informed.