Full Year 2026 Nationwide Building Society Earnings Call Transcript
Key Points
- Nationwide Building Society (LSE:NBS) achieved a record year in personal current account openings, with 1 million new accounts, leading the market in net switchers.
- The company maintained its position as the number one for growth in mortgages and retail deposits, with mortgage net lending exceeding £10.3 billion.
- Nationwide's acquisition of Virgin Money has diversified its balance sheet and increased underlying profit, delivering £1.8 billion of value back to members.
- The company has been recognized by Forbes as the best bank in the UK and led the retail banking sector in Britain's most admired companies in 2025.
- Nationwide has made significant investments in technology, including a fully modernized SAP platform and dual cloud payment processing, enhancing customer experience and operational resilience.
- Despite strong performance, the competitive market has led to lower new business margins on both mortgages and customer deposits.
- Integration costs related to the Virgin Money acquisition totaled £127 million, with further expenditure expected to peak over the next 12 months.
- The savings market is experiencing heightened competition from both high street and non-traditional players, challenging Nationwide's market position.
- Nationwide's business lending was down marginally year on year due to specific redemptions and a competitive market.
- The company faces potential challenges from fintechs and new entrants, including US banks, which could impact its market share.
Hello everyone and welcome to Nationwide's Annual Results Call for Investors. I'm Debbie Crosby, the Chief Executive and delighted to be joined this morning by Muir Matheson, our CFO.
So, delighted to say it's been another outstanding year for Nationwide. We've delivered a standout year in personal current accounts with a record 1 million new openings as more people choose to switch to Nationwide than any other brand.
In our core markets, we were once again number one for growth in mortgages, in retail deposits, and we have built strong momentum in business banking. We've had a record year for new business current account openings under our Virgin Money brand.
We've also continued to set the pace on service, extending our lead over our peer group. And that matters because it really reflects that we're here to put members first and deliver consistently good outcomes.
Taken together and supported by a larger, more diversified balance sheet following our acquisition
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