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Nationwide fiscal Q1 profit down YOY

Nationwide Building Society reported statutory after-tax profit of £240 million for the quarter ended June 30, down from £292 million in the same period in 2016.

Statutory pretax profit, including £20 million of derivative and hedge accounting gains, fell on a yearly basis to £322 million from £401 million.

Underlying pretax profit decreased year over year to £301 million from £368 million. The company noted that the underlying profit included a £26 million one-off gain from the sale of its stake in VocaLink while the year-ago figure included a £100 million one-off gain from the disposal of its stake in Visa Europe.

"Profit performance in the first quarter remained comfortably within our strategic target range and, after allowing for one-off items, was broadly consistent with the prior period," CEO Joe Garner said.

Gross residential mortgage lending fell on a yearly basis to £8.1 billion from £8.6 billion, while member deposit balances rose to £145.8 billion from £144.5 billion.

The net interest margin remained flat year over year at 1.35%.

The building society booked impairment losses on loans and advances of £36 million for the period, more than double compared to the year-ago £16 million.

The company's common equity Tier 1 ratio stood at 26.4% at June 30, compared to 25.4% at April 4. The CRR leverage ratio was 4.1% at June-end, compared to 4.2% at April 4.

Nationwide's liquidity coverage ratio stood at 133.6% for the quarter ended June 30, compared to 124.0% a year earlier.