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Banking Sector Results - Lets kick this off with...

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The Nationwide. Released this week, sounds more exciting than Avengers 'End Game'


Nationwide preliminary FY results 2018/9 – pbt down 15% on tighter margins and investment - Nationwide said its net interest margin had narrowed from 1.31% to 1.22% in the year to April 4. Pre-tax profits fell by 15% to £833m, partly because of £227m of write-offs on old technology and additional spending on new technology. Joe Garner, chief executive, said he expected the pressure to intensify during the year, with another 0.05% to 0.1% likely to be wiped from the net margin. He said ringfencing rules, which encourage the biggest banks to lend more mortgages, accounted for some of the additional pressure in mortgage pricing, adding that Nationwide had lent a record £36.4bn of gross new loans in the year by pricing competitively in mortgages, boosting its market share from 12.8% to 13.4%.  Nationwide has 15.9m member customers, 18,000 employees and 700 branches., and estimated it had generated £705m of member benefits in the year, up from £560m a year before, via measures such as paying above average rates on savings. Current account openings decreased slightly from 816,000 to 794,000, but Nationwide broke through the 8% barrier for the first time for its share of the current account market. The society has embarked on a big push to modernise its technology, earmarking an extra £1.3bn for technology spending over the next five years. The CET1 ratio improved from 30.4% to 32.4%.

Profit before Tax down 15% on tighter margins and investments. When you couple this with the recent declaration by the Bank Of England that they are watching the mortgage industry like a hawk with respect to the price war...this has interesting points to consider!

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Paragon: A challenger bank non the less...


Paragon Bank H1 results to March 2019 -  strong lending growth -  The bank reported growth in lending volumes of 30.2% to £1,289.2m (2018 H1: £990.3m), and underlying profits up 8.7% to £79.8m (2018 H1: £73.4m). Retail deposit balances were up 11.0% to £5.9 billion, and lending volumes for asset finance increased £47m to 31 March 2019; a rise of 29% to £211m compared to the same period last year.  Within the mortgage division, it continued to focus on professional landlords. Complex lending comprised 91.5% of the period-end pipeline and completions rose 44.0% from their first half 2018 level. Total new lending in the Mortgage segment was 15.7% higher in the first half of 2019 compared to the first half of 2018. As a consequence of this strong new business flow and slower redemption rates, the net loan book in the Mortgage segment rose 6.6% from March 2018 to March 2019. Its deposit-taking franchise has continued to develop, with balances rising 37.2% year-on-year to £5.9 billion. Its traditional online distribution has been augmented during the half year via a relationship with Hargreaves Lansdown, and further platform partnerships are under development. The average cost of the deposit book increased by 6 basis points over the year to 1.81% at the end of March 2019, despite the increase in base rates since March 2018. More. (22.05.2019)


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  • 312 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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