Nationwide profits boosted
Due to a 17% increase on annual pre-tax
profits, nationwide buliding society profits have increased.
In April the company earned nearly
£652m, simply because they lent customers £10.6bn
when they applied for mortgage
deals. This figure indicates a increase of 92.7%.
However Portman stated that towards
the end of 2007 further interest rate rises will conclude to a
decrease on the housing market.
Nationwide rejected nearly 61% of people
who applied for an unsecured loan simply because it conflicted
to win in its arrears.
Graham Beale, chief executive said,
"We're being much more careful about the business we're bringing
onto the balance sheet."
Nationwide pointed out that they have
no control over the housing market and with interest rates risen
over three times since the start of 2007, there is no doubt that
this rate will just keep on rising.
Nationwide said property value will
increase by 6-8% by the end of 2007.
Around August the building society’s
merger with Portman is said to be finished, leaving nearly 900
redundancies in the following 2 years.