One of British largest and most popular banks intends to distribute more than £340 million ($429 million) to its current account holders, after registering a significant jump in annual profits benefiting from successive rises in interest rates that have increased the costs charged to borrowers.
Nationwide, one of the largest lenders and one of the most popular banks in the UK, announced it would deposit £100 (US $125) in the current accounts of more than 3.4 million customers over the next month.
This generous distribution is the first of its kind in the bank’s history but will not be the last, and will be repeated in the coming years. The bank also announced.
The financial income of Nationwide jumped from lending 12 times after the successive rises in interest rates in the Bank of England, but the bank warned that rising inflation and economic slowdown may affect its financial conditions.
Paying to customers’ current accounts is an extraordinary step for the bank, with companies and banks usually distributing cash to investors only after annual results.
This move was possible because the lender was a constructive, customer-owned community. said Debbie Crosby, CEO of Nationwide Bank.
We don’t see anyone else doing that. Crosby said. Under the circumstances of living crisis in The UK, the Bank was of the view that it necessary to give people money as soon as possible.
Customers only need to own a Nationwide current, savings, or mortgage account with a balance of at least £100 to receive the payment.
Nationwide, the UK mortgage giant, expects house prices to fall by 4.5% this year and fall by 12% by the end of 2024, adding that activity is expected to remain weak for the rest of the year.
The bank recorded pre-tax earnings
of £2.2 billion for the year ending April 4, up from £1.6 billion in the past year.