Nationwide Building Society will put £100 into customer accounts next month after announcing a 40% jump in annual profits.
The UK’s largest building society launched what it called ‘Nationwide Fairer Share Payment’, returning £340mln directly to eligible members, around £100 each.
Kevin Parry, chairman of Nationwide Building Society, said: “Our financial strength has allowed the board to declare an inaugural distribution - the Nationwide Fairer Share Payment. Eligible members will receive a £100 payment into their current accounts in June 2023."
The building society intends to make further payments if financial circumstances allow.
Debbie Crosbie, chief executive of Nationwide, said: “We can do this because we’re a building society, not a bank, and our profit is reinvested for our members’ benefit.”
Underlying profit increased to £2,233mln from £1,604mln and statutory profit rose to £2,229mln (2022: £1,597mln), driven by income growth.
Rising interest rates supported growth in total underlying income to £4,673mln (2022: £3,867m) while the net interest margin improved to 1.57% from 1.26%.