Nationwide BS customers to receive share of its soaring profits

The building society will begin paying eligible members £100 each next month.

After reporting a 40% jump in its annual pre-tax profits, Nationwide BS will begin a pay-out scheme for its eligible customers next month.

The Nationwide Fairer Share Payment includes a £100 reward for those who use who hold a current account and either a savings account or mortgage with the mutual. In addition, the savings account or mortgage needs to have a minimum balance of £100.

“We are able to do this because of our financial strength and the fact we’re a building society, not a bank, so our profit is used for our members’ benefit,” said Debbie Crosbie, Chief Executive of Nationwide Building Society.

Overall, it expects to deposit £340 million into its members’ accounts. This represents approximately 20% of its annual profits after tax.

A higher interest rate environment was one of the main drivers behind Nationwide BS’s increase in revenue over the last year.

After releasing its preliminary results on Friday, it said it received nearly £4.5 billion in net interest income. Compared to 2022, it received nearly £3.6 billion through this form of revenue.

Nationwide BS, however, isn’t the only bank to profit from heightened interest rates.

In its interim figures for the year's first quarter, NatWest announced that it had earned £2.9 billion in net interest income in the year until 31 March. Compared to its previous results, it had earned just over £2 billion in the same period.

In addition, Nationwide BS launched a two year fixed rate bond at 4.75% AER which is exclusively available to its 16 million members.

However, the top rates in this sector are now bordering on 5% AER, with SmartSave currently offering the market-leading rate of 4.97% AER.

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