Joe Garner, chief executive of Nationwide Building Society

Nationwide faced charges of £36 million for PPI compensation as a surge of customers claimed for compensation before the August 31st deadline. This increase in claimants took the building society’s total PPI bill for the half-year to £52m.

Nationwide has since posted a 40% fall in statutory profit with underlying profits falling at around 30%. This meant that pre-tax profits for the bank fell to £309m for the six months to 30 September, a decrease of £516m from the previous year.

Joe Garner, chief executive of Nationwide Building Society, said: “In line with our expectations, our profits were lower as we invested in meeting the needs of our members, in our service and in our future. As we announced in September, profits were also affected by an additional PPI charge. “

Nationwide has been investing to update and improve its IT systems and has also invested in revamping and improving its branches. It has already upgraded 28 locations within the last six months.

In regards to outlook for Nationwide Building Society, the group said: “The UK’s growth has slowed as a result of weaker global growth and Brexit uncertainty, but household spending has remained relatively solid, and housing market activity broadly stable at subdued levels.

“Whilst the economic outlook remains uncertain, we expect the current low interest rates and competition in our core markets to continue. As we move forward, we will continue to make decisions in our members’ interests, balancing growth with a focus on broadening and deepening relationships with our members, delivering leading service and helping them make the most of their membership.”