Nationwide profits suffer big fall
One of Northampton's biggest employers has announced its profits have halved because of the "fundamental changes" to the financial sector last year.
The Nationwide Building Society, which has an office at Moulton Park, announced its underlying tax profits for the year ending April 4 were 393m, a reduction of 50 per cent on the previous year.
But it said total assets – which were increased by mergers with other building societies – increased by 13 per cent to 202.4bn.
Nationwide has remained free from Government support and has not needed to raise additional capital and the building society said its results demonstrated "a resilient performance in an exceptionally difficult
market place".
Nationwide chief executive Graham Beale said: "History will record 2008 as a year of fundamental change to banks and financial institutions across the world. Nationwide has remained strong in the midst of all this turbulence and has been the only major UK banking institution not to raise capital or seek access to Government-sponsored capital-enhancing schemes.
"This reflects a combination of our naturally high capital and prudent lending practices.
"Profitability has been adversely affected by the low interest rate environment and increased provisions as a result of the current recession. Our reported profit is 53 per cent lower than it would otherwise have been because there is an exceptional charge of 241 million relating to the levies payable to the Financial Services Compensation Scheme."
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