Nationwide in £10bn mortgage hit
Nationwide said the government’s proposed changes to the bank levy and introduction of a tax surcharge on banking companies will cost £300m.
In the year to 30 June 2015 Nationwide increased its gross mortgage lending by 17.2% to £6.8bn and its net lending by 23.5% to £2.1bn, taking its total balances to £154.9bn.
Over the period it also increased its underlying profit before tax by 52% to £400m, up from £263m in the year to 30 June 2014.
The building society currently has a market share of 27.5% in terms of net residential lending.
Graham Beale, Nationwide’s chief executive, said: “Our new financial year started strongly with increased levels of lending to support home ownership, the introduction of new technology to improve service, and underpinned by robust financial results.
“The proposed changes to the bank levy and introduction of the tax surcharge on banking companies announced in last month’s budget may benefit UK headquartered international banks but will have a disproportionate effect on building societies such as Nationwide.
“This represents a missed opportunity to support diversity by acknowledging that building societies are different to banks and to recognise the contribution Nationwide and other mutuals make by lending to the UK economy, and the housing market in particular.”