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Nationwide profits boosted

17/05/2007

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.