Britain's Nationwide annual profit slips as mortgage market competition bites

Virgin Money UK

23/05/2024 07:13

LONDON, May 23 (Reuters) - Nationwide Building Society
 NBS.L  reported its annual profit fell to 1.8 billion pounds
($2.29 billion), from 2.2 billion a year earlier as competition
in the mortgage market squeezed margins.
    The lender said it expects to complete the acquisition of
rival Virgin Money  VMUK.L  in the fourth quarter of this year,
after the latter's shareholders on Wednesday voted to approve
the deal.
    Nationwide extended its promise not to close more of its 605
branches until 2028, at a time when Britain's high street
lenders are slashing their outlets across the country as
customers increasingly bank online. 
    Credit impairment charges reduced to 112 million pounds from
126 million the year prior, and Nationwide said mortgage arrears
remained low albeit they have started to increase as higher
interest rates push up monthly payments for homeowners.



($1 = 0.7862 pounds)

 (Reporting By Lawrence White
Editing by Tomasz Janowski)
 ((lawrence.white@thomsonreuters.com; +44 20 7513 5083; Reuters
Messaging: @ReutersLawrence))