Nationwide Building Society (NBS) H2 2025 earnings summary

Executive summary

• Achieved record organic growth in mortgages and retail deposits, with increased market share in core products and highest ever member value returned through reward payments.

• Successfully acquired Virgin Money, diversifying the balance sheet, expanding business banking capabilities, and increasing scale.

• Delivered record statutory profit of £2.3bn, up 30% year-over-year, with strong capital and cost discipline.

• Maintained number one position for customer satisfaction for the 13th consecutive year and received industry recognition for service.

Financial highlights

• Statutory profit rose to £2.3bn from £1.8bn year-over-year; underlying profit was £2.0bn.

• Record net mortgage lending of £15.5bn and organic retail deposit growth of £14bn.

• Net interest income rose to £5.0bn, with net interest margin stable at 1.55% year-over-year.

• Group CET1 ratio at 19.1%, leverage ratio at 5.2%, both peer-leading.

• Retail deposit growth of £14.0bn and business/commercial deposit growth of 402% year-over-year.

Outlook and guidance

• Expect heightened competition in both mortgage and deposit markets, leading to margin compression.

• Structural hedge repricing expected to offset some margin headwinds.

• Base case scenario assumes a rise in unemployment and 1.9% house price increase in 2025.

• Weighted average of all scenarios indicates a 6% fall in house prices from Dec 2024 to early 2027.

• Continued investment in integration and digital innovation, with further details at interim results.