Nationwide profits down by nearly 50%

The UK's Nationwide Building Society reported a 46% fall in annual profits today and warned that historic low interest rates would hit profits over the year ahead.

The UK’s biggest building society posted underlying pre-tax profits of £212m (€248m) in the year to April 4, down on the £393m (€459m) a year earlier.

Nationwide said it was taking tough action on costs to help limit profit declines, including possible cuts in its administration centre network.

But in some welcome cheer for the housing market, Nationwide said it expects property prices to remain stable over the next year, with any “major dip” unlikely.