Building society Nationwide cuts growth over Brexit fearsComments Off on Building society Nationwide cuts growth over Brexit fears
Britain’s biggest building society today toned down its view of UK growth, warning that the Brexit referendum would compound short-term uncertainty over the global economy.
Nationwide said: “Given this mixed picture, we expect the UK economy to continue to grow but potentially at a slightly slower rate. Improving household finances will continue to support both domestic demand and a relatively stable outlook for the housing market. Concerns over global growth will, however, tend to delay any move in interest rates.”
It does not expect a rise in interest rates until “late 2016 at the earliest”. Headline pre-tax profits rose 15% to £1.13 billion in the nine months to December.
Mortgage lending was up 16% and deposits grew by 29%. The building society took more than its share of people switching current accounts, adding 384,000 in the nine months. Nationwide added £31 million to its provisions in the latest quarter saying the majority of that covered the most recent rulings on PPI mis-selling.
Graham Beale, who will hand over to Joe Garner as chief executive in April, said: “The results have benefited from our success in key markets and a strong margin, reflecting the higher market rates for mortgage loans in recent years.”
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