Reader TTS

Nationwide Building Society reported a significant increase in its earnings for the year ending 31 March 2025, driven by a surge in first-time buyers ahead of the stamp duty deadline. The

society emerged as the top lender for first-time buyers in the UK, with 120,000 securing their first homes, a substantial rise from 64,000 in the previous year, as reported by City AM. This

growth was spurred by Chancellor Rachel Reeves's decision to reduce the stamp duty threshold for first-time buyers from £425,000 to £300,000. As a result of the rush to avoid the

impending tax increase, Nationwide saw its underlying income climb to £5.2 billion, up from £4.7 billion in the prior 12 months. Consequently, the mutual's pre-tax profit soared by

nearly £500 million, reaching £2.3 billion for the period. However, Nationwide faced escalating costs, which rose to £3.2 billion from £2.5 billion, partly due to expenses incurred from its

acquisition of the prominent Virgin Money last March. Following the completion of the £2.8 billion purchase of the then FTSE 250-listed lender in early October, Nationwide became the

UK's second-largest retail banking provider, surpassing Natwest but still trailing behind Lloyds Banking Group. Post-takeover costs exceeded £689 million, attributed to "planned,

short-term investment to improve customer experience." NATIONWIDE RETURNED £2.8BN TO CUSTOMERS Building societies like Nationwide typically offer more favourable rates on savings and

loans, redistributing surplus capital through better deals rather than dividends and buybacks, as is common with listed banks. The company noted a record £2.8 billion in value returned to

members. Debbie Crosbie, Nationwide's chief executive, commented that the company is "well placed" to assist customers amidst subdued economic activity. Crosbie remarked that

the "pace of UK economic activity has remained subdued and is likely to improve only gradually." She noted that "Solid labour market conditions, resilience in real earnings

and lower interest rates should support housing market activity and growth in deposits." Despite a "highly uncertain," global economic outlook, Crosbie mentioned that UK

households and businesses focused on the UK market are "generally well placed for shocks." Nationwide's chairman, Kevin Parry, stated: "The acquisition of Virgin Money

represented a significant strategic advance for Nationwide. It will bring the benefit of mutuality to more individuals and to business customers." LIKE THIS STORY? WHY NOT SIGN UP TO

GET THE LATEST BUSINESS NEWS STRAIGHT TO YOUR INBOX.