BUILDING society Nationwide lifted profits by 30% – despite low interest rates and the impact of subdued savings and mortgage markets.
The group was helped by a 35% reduction in provisions for bad debts to £359m – as well as a cost-cutting drive saving about £5m.
Chief executive Graham Beale described the performance to lift underlying profits to £276m in the year to April 4 as another strong year for the group.
He said Nationwide’s £16m provision to cover compensation claims for mis-sold payment protection insurance compared “very favourably” with the several billions of pounds announced by banks.
But Nationwide said the economic recovery remained fragile and that the pace of the upturn was likely to be slow.