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Nationwide's fiscal Q1 profit falls YOY on absence of one-off gain

Nationwide Building Society reported a year-over-year decline in its statutory after-tax profit for the quarter ended June 30 to £210 million from £240 million.

Underlying pretax profit fell on a yearly basis to £270 million from £301 million. The company noted that the year-ago figure included a one-off gain of £26 million from the sale of its stake in VocaLink.

Statutory pretax profit also decreased to £281 million from the year-ago £322 million. Nationwide said the current figure includes an £11 million gain from derivative and hedge accounting, which are excluded from underlying profit.

Nationwide booked impairment losses on loans and advances of £13 million, down from the year-ago £36 million reported under IAS 39. The company noted that there are "no significant changes to assumptions since the adoption of IFRS 9 at the beginning of the year."

Net interest margin was 1.28%, down from 1.35% a year ago and from 1.31% at the end of its 2017 fiscal year.

As of June 30, Nationwide's common equity Tier 1 ratio was 31.3%, up from an adjusted 30.4% as of April 5. Its U.K. and CRR leverage ratios were flat at 4.9% and 4.6%, respectively, over the period. The liquidity coverage ratio, meanwhile, rose to 139.2% as of June 30 from 130.3% as of April 4.