Nationwide boosts loans for homes and to SMEs
Thursday 24 May 2012
Nationwide Building Society showed the banking industry a clean pair of heels yesterday, reporting that it is sharply increasing its mortgage lending and offering hope to small businesses that are starved of credit for the first time.
The chief executive Graham Beale pledged to "take the banking industry head on" with its move into the market for loans to small and medium-sized firms.
He said he hoped the scheme would aid the economy as much as it does his organisation.
The mutually owned outfit said mortgage lending in the year to April was up 44 per cent to £18.4bn, a sign of its competitiveness and of how tight bank lending has been. The society noted it helped 24,000 buyers buy their first home, an increase of 9 per cent on the year before.
The figures come as the big banks remain under attack for failing to provide loans to boost the housing market and failing to support British businesses despite receiving multi-billion pound bailouts from the public purse. Mr Beale said: "We're already a lender to the commercial real estate sector, we've been asked by customers to provide them with a corporate lending facility. We just feel it's a natural extension of what we can do."
Christopher Shaw of alternative finance specialists Platform Black welcomed the news: "The most recent report from the Bank of England confirms once and for all what any company director knows: that SMEs just aren't getting credit and, worse still, are having their overdraft facilities cut or pulled."
Profits at the UK's largest building society fell from £317m to £203m after a number of one-off costs.
These included £75m for the Financial Services Compensation Scheme and the bank levy, higher than last year's £50m. Other exceptional costs included £61m to cover restructuring measures.
The underlying profit for the year was £304m, up 10 per cent from £276m last year.
- 1 This restaurant has misunderstood the concept of 'cheese and biscuits'
- 2 Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
- 3 Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
- 4 PornHub turns masturbation into energy in bid to save the planet
- 5 Have sex with your iPad thanks to the new sex toy no-one asked for
Raif Badawi, the Saudi Arabian blogger sentenced to 1,000 lashes, may now face death penalty
Delhi bus rapist blames dead victim for attack because 'girls are responsible for rape'
PornHub turns masturbation into energy in bid to save the planet
Spiritual leader allegedly manipulated 400 men into removing testicles to be 'closer to God'
The 'sex selfie stick' lets you FaceTime the inside of a vagina
New theory could prove how life began and disprove God
This is what it's like to be dead, according to a guy who died for a bit
End of the licence fee: BBC to back radical overhaul of how it is funded
'Jihadi John': CAGE representative storms off Sky News accusing Kay Burley of Islamophobia
Ukip would cut billions from Scottish budget to fund English tax cuts
Nearly 100,000 of Britain's poorest children go hungry after parents' benefits are cut
iJobs Money & Business
£25000 - £30000 per annum + benefits: Ashdown Group: A global leader operating...
£15000 - £16000 per annum: Recruitment Genius: A Customer Service Advisor is r...
£22000 per annum + pension,bonus,career progression: Ashdown Group: An establi...
£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...