Nationwide Building Society (NBS) investor relations material

Executive summary

• Achieved record growth in personal and business current accounts, with over 1 million new openings and leading net switcher gains for six consecutive quarters.

• Maintained number one position for growth in mortgages and retail deposits, with strong momentum in business banking and student accounts.

• Integration of Virgin Money completed, including asset transfers, system migrations, governance alignment, and expansion of the balance sheet.

• Delivered £1.8bn in value to members, including £0.4bn through Fairer Share payments, and maintained top customer satisfaction for 14 years.

• Continued investment in technology, AI, and digital channels, driving productivity and customer experience improvements.

Financial highlights

• Underlying profit rose 9% year-on-year to £2,026m, with a 17% increase in H2; net interest income reached £6,110m and total income £6,378m.

• Mortgage net lending exceeded £10.3bn, increasing market share to 16.3%; retail deposit balances grew by £11.8bn.

• Net interest margin improved to 161bps, supported by diversification and structural hedge tailwinds.

• Integration costs totaled £127m; below-the-line acquisition costs were £138m.

• Cost growth remained below inflation, aided by productivity improvements.

Outlook and guidance

• Integration spend expected to peak in the next 12 months, then decline.

• NIM expected to remain stable as competition and structural hedge effects balance out.

• Continued focus on cost discipline and maintaining robust capital ratios.

• Launch of a Nationwide-branded business banking proposition planned for H1 2027.

• Base case scenario assumes rising unemployment and modest house price growth; probability-weighted scenarios indicate a potential fall in house prices through 2028.