(Sharecast News) - Nationwide posted a surge in annual earnings on Thursday, boosted by its £2.9bn takeover of Virgin Money.
The building society, which completed the unusual takeover of the listed company in September 2024, said total underlying income in the year to 31 March was £5.2bn, up from £4.7bn a year previously.

Group net mortgage lending was £15.9bn, giving it a market share of 16.2%, up notably on 2024's 12.3%, while retail deposit balances increased by £67.3bn to £260.7bn.

As a result, statutory profits before tax jumped 30% to £2.3bn.

Debbie Crosbie, chief executive, said it had been an "outstanding" 12 months.

Group chief financial officer Muir Mathieson added: "Cost discipline is strong, with underlying Nationwide cost growth significantly below the headline level of inflation.

"Our balance sheet remains robust and well capitalised. Arrears rates are low and stable."

Looking ahead, the lender sounded a note of caution. It acknowledged that the underlying pace of UK economic activity remained "subdued" and was likely to improve "only gradually".

But it continued: "Solid labour market conditions, resilience in real earnings and lower interest rates should support housing market activity and growth in deposits.

"The global economic outlook remains highly uncertain but UK households and the UK-focused businesses we support appear generally well-placed for potential shocks."

The Virgin Money integration was also "progressing well", it noted, and had so far incurred lower-than-expected expenditure.

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