Nationwide, the UK’s largest mutual building society has confirmed that plans are “progressing well” for them to enter the small business lending market. They also revealed that Nationwide is to start lending to SMEs in 2014.
Nationwide posted total underlying income of more than £1bn in the first 6 months of its financial year, up from £990m for the corresponding period last year. However, underlying pre-tax profit has fallen from £181m in 2011 to £151m in 2012 – Nationwide say their profits have been impacted by losses of £193m on its commercial property lending during the period.
The sustained high level of PPI Claims are also said to have had an effect on their profits. Nationwide say that 42% of claims received have been in cases where PPI was not sold, with 72% of these invalid claims being submitted by claims management companies.