Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

UK’s Nationwide to pay 340 million pounds to customers after profit leap

Published by Uma Rajagopal

Posted on May 19, 2023

Featured image for article about Top Stories

LONDON (Reuters) -British lender Nationwide will pay its customers 340 million pounds ($429 million) through payments to their current accounts, it said on Friday after reporting a 40% leap in annual profit driven by a long run of Bank of England rate hikes.

The country’s largest building society said it would make a 100 pound payment to eligible customers next month, adding that this will be its first such distribution and that the society aims to repeat this in future years.

Nationwide reported pretax profit of 2.2 billion pounds for the year to April 4, up from 1.6 billion pounds the previous year.

The payment to customers is an unusual move for a British lender, with companies typically returning cash to investors after annual results.

Nationwide CEO Debbie Crosbie said the unusual move was possible because the lender was a building society owned by customers.

The lender nonetheless said that Britain’s tough economic outlook could lead to more customers falling behind on loan repayments and it set aside 126 million pounds to cover possible soured loans, compared with the release of 27 million pounds of reserves the previous year.

($1 = 0.7923 pounds)

(Reporting by Iain WithersEditing by Jason Neely and David Goodman)