- Nationwide Building Society booked a 44% slump in annual profit, citing margin pressure plus the impact of the Covid-19 pandemic in latter part of its financial year.

Pre-tax profit for the year through 4 April dropped to £466m, down from £833m on-year.

Underlying income fell 3.9% to £3.05bn and the company's net interest margin contracted by nine basis points to 1.13%.

Nationwide said the slump in profit also reflected spending on technology and higher provisions for mis-sold payment protection insurance.

It recorded a £101m financial impact from an increase in expected credit losses resulting from payment holidays and the economic outlook.

'While the coronavirus impacted our profitability in the last few weeks of the year, there was pressure on margins even before it hit,' chief executive Joe Garner said.

'In the challenging period ahead, Nationwide will focus on maintaining our financial strength, managing our business sustainably, and prioritising the needs of our members.'

At 9:41am: [LON:NBS] Nationwide Building Society Core Capital Deferred Shs Min 250 Ccds share price was -19.5p at 144.5p

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