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Nationwide Profits Soar 30% As Bad Debt Provisions Drop 35%

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given that the economic environment is expected to gradually strengthen, and that interest rates are likely to remain relatively low

What a fecking muppet. Doesn't he realise why rates are low ? Because the economy is borked.

He really thinks we'll have a booming economy and ZIRP ?

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http://www.dailymail.co.uk/news/article-1390681/Nationwide-hails-strong-year-profits-soar-30.html

'Building society Nationwide today said it grew profits by 30 per cent despite low interest rates and the impact of subdued savings and mortgage markets.

The group was helped by a 35 per cent reduction in provisions for bad debts to £359 million, as well as a cost-cutting drive saving around £5million.

Chief executive Graham Beale described the performance, in which underlying profits rose to £276m in the 12 months to April 4, as another strong year for the group.

Mr Beale added: 'Whilst a small decline in house prices is possible over the next 12 months, we do not think that large house price falls of the magnitude seen in 2008 are likely, given that the economic environment is expected to gradually strengthen, and that interest rates are likely to remain relatively low, limiting the level of mortgage arrears and distressed sales.'

Nationwide reported gross mortgage lending of £12.8billion, a market share of 9.5 per cent, but with members looking to pay down their debts and take advantage of the low interest rate environment it saw a fall in total mortgage balances.

It added its efforts to help savers counter low interest rates were rewarded with net retail deposits of £600m, compared with savings outflows of £8.2bn a year earlier.

Nationwide added that its balance sheet continued to strengthen, while arrears were less than one third of industry levels.

Mr Beale added: 'This has been another strong year for Nationwide, during which we have recorded excellent financial results, further improved the strength of our balance sheet and delivered market leading products and services for our members.''

I realise it's his job to sound optimistic,I just wish it wasn't funded by the distortions created by the BoE which are generally funded by us.

Wonder how much he earns?

Do Nationwide care that much is there is a crash?

A combination of Brown, the recession and stupidity has seen all there competitors wiped out. Not a single de-mutulised BS us left solvent.s Nuts isn;t, considering that Halifax, as HBOS was, is one of them.

AFAIK NW lending is pretty tight, and always have been. Saying that, they are vert concentrated around the South East and, despite what people say, London is going to be very bad.

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http://www.dailymail.co.uk/news/article-1390681/Nationwide-hails-strong-year-profits-soar-30.html

'Building society Nationwide today said it grew profits by 30 per cent despite because of low interest rates

<snip>

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http://www.dailymail.co.uk/news/article-1390681/Nationwide-hails-strong-year-profits-soar-30.html

'Building society Nationwide today said it grew profits by 30 per cent despite low interest rates and the impact of subdued savings and mortgage markets.

The group was helped by a 35 per cent reduction in provisions for bad debts to £359 million, as well as a cost-cutting drive saving around £5million.

Chief executive Graham Beale described the performance, in which underlying profits rose to £276m in the 12 months to April 4, as another strong year for the group.

Mr Beale added: 'Whilst a small decline in house prices is possible over the next 12 months, we do not think that large house price falls of the magnitude seen in 2008 are likely, given that the economic environment is expected to gradually strengthen, and that interest rates are likely to remain relatively low, limiting the level of mortgage arrears and distressed sales.'

Nationwide reported gross mortgage lending of £12.8billion, a market share of 9.5 per cent, but with members looking to pay down their debts and take advantage of the low interest rate environment it saw a fall in total mortgage balances.

It added its efforts to help savers counter low interest rates were rewarded with net retail deposits of £600m, compared with savings outflows of £8.2bn a year earlier.

Nationwide added that its balance sheet continued to strengthen, while arrears were less than one third of industry levels.

Mr Beale added: 'This has been another strong year for Nationwide, during which we have recorded excellent financial results, further improved the strength of our balance sheet and delivered market leading products and services for our members.''

I realise it's his job to sound optimistic,I just wish it wasn't funded by the distortions created by the BoE which are generally funded by us.

Wonder how much he earns?

Banks that face credit rating downgrades are Nationwide, LLoyds, Sandander, RBS, BOI and others.

All is not well.

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What a fecking muppet. Doesn't he realise why rates are low ? Because the economy is borked.

He really thinks we'll have a booming economy and ZIRP ?

He's not a muppet he's a genius.

By saying there wont be a crash, he can adjust down bad bdebt provisions.

The money set aside for bad debts then goes straight on the bottom line, meaning Nationwide made a big profit.

Profit = Management bonuses.

What he's done, essentially, is make an unsubstantiated statement that allow shim to pay himself a fat bonus... with no change of any repercussions.

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I think Nationwide are in a pretty good position.

Only 10% Deposit for quite a while, they had a 5% deposit package I think 6 years ago but this was at +3.47% base rate.

4.2%+ for existing customers coming off deals. Basically uncompetitive compared to the banks.

30% LTV still gets you 4.2% fixed.

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What a fecking muppet. Doesn't he realise why rates are low ? Because the economy is borked.

He knows extremely well, better than you and I.

On the other hand, he needs justification to reduce those provisions to show a healthy profit (£180m out of £270m) and pay himself a hefty bonus.

What else would you expect from this lot?

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He knows extremely well, better than you and I.

On the other hand, he needs justification to reduce those provisions to show a healthy profit (£180m out of £270m) and pay himself a hefty bonus.

What else would you expect from this lot?

Didn't they run an advertising campaign recently about how their mutual status meant they didn't have to buy champagne for shareholder meetings? I assume they will be sharing these 'profits' with their members?

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Just looking to make themselves a quick bonus before it all comes crumbling down around them.

Basically this is theft. Future stealing from tax payers to bail them out again if/when house prices fall.

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Didn't they run an advertising campaign recently about how their mutual status meant they didn't have to buy champagne for shareholder meetings? I assume they will be sharing these 'profits' with their members?

Course they won't! I used to have savings with NW and would get the yearly AGM voting papers and there was at least one in the last couple of years that had a vote on increasing executive pay.

NW seem a bit weird - they're a mutual, but basically run like a bank (that's a stated aim of the current chairman). They severely dropped their savings rates a couple of years ago - hence the £8.2 billion removed last year. Seems this year they've learned from their mistake and have put them back up to the level of 'only slightly insulting'.

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Just looking to make themselves a quick bonus before it all comes crumbling down around them.

Basically this is theft. Future stealing from tax payers to bail them out again if/when house prices fall.

I would be interested to know the emoluments at Nationwide. I reckon they are a lot less than the public sector banks, RBS and Lloyds for the equivalent jobs.

Nationwide spent most of the noughties getting hammered by the crooked banks RBS and HBOS, who through the use of balance sheet fraud were able to raise capital cheaply and gain market share in lending by forwarding money to anyone with an outstretched hand. It seems such a shame that the directors at these banks couldnt at least be fully liable for any losses incurred during that period.

Nationwide is now in a much stronger position. I dont think it engaged in liar loans, and is now seeing the results of that, with borrowers repaying what they owe. That could all change of course if interest rates rise, no bank no matter how well run it is, can claim immunity to all strong headwinds in the marketplace. But it does seem to be as strong as anyone right now, and will be stronger still if it doesnt buy Northern Rock.

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Nationwide is now in a much stronger position. I dont think it engaged in liar loans, and is now seeing the results of that, with borrowers repaying what they owe. That could all change of course if interest rates rise, no bank no matter how well run it is, can claim immunity to all strong headwinds in the marketplace. But it does seem to be as strong as anyone right now, and will be stronger still if it doesnt buy Northern Rock.

+1

Nationwide are pretty conservative in their approach to banking. In recent times they have started selling insurance, structured products and loans which probably make more money in commission than the traditional save and borrow model, but I don't think they make a large contribution to the bottom line. Saver's funds (approx £120bn) aren't out of line with advances (approx £150bn), and over 55% of the mortgages are at 50% LTV with less than 10% at 90%+ LTV. (average around 47% LTV).

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He's not a muppet he's a genius.

By saying there wont be a crash, he can adjust down bad bdebt provisions.

The money set aside for bad debts then goes straight on the bottom line, meaning Nationwide made a big profit.

Profit = Management bonuses.

What he's done, essentially, is make an unsubstantiated statement that allow shim to pay himself a fat bonus... with no change of any repercussions.

I'm not sure how it works for BSs, but if NW were a bank, they could retain part of this profit and declare it Capital, thus making themselves appear much stronger on paper.

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He knows extremely well, better than you and I.

On the other hand, he needs justification to reduce those provisions to show a healthy profit (£180m out of £270m) and pay himself a hefty bonus.

What else would you expect from this lot?

Ah, yes, I remember it well.

Provisions, the saviour of the year end.

Profit too high? Too much CT? That contract looks dodgy, better up the provisions.

Profit too low? Need more dividend? That contract looks much better this year :D.

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I seem to remember that the Nationwide boss earns about £2 million a year. Well below some #ankers but considerably more than the poor staff who work in their branches. Mutuality in an Orwellian sense is nearer the mark.

I only wish the 15million Nationwide members would vote AGAINST the pay of these people. The power is, in theory, with the members to do this. Why are the British so wet?

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  • 311 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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