British building society Nationwide says it expects market conditions to remain difficult due to Europe's ongoing debt crisis.
Nationwide, which specialises in mortgages and savings, said its underlying pre-tax profit for the six months ending September had risen 17% from a year ago to £172m.
"Market conditions are likely to remain difficult until the economy in the UK is more certain and the financial crisis in the euro zone is resolved," Chief Executive Graham Beale said in a statement.
"Despite the uncertainties, I am confident that we can continue to invest in the business, deliver more products and services to more customers and deliver our strategic vision of being the UK's leading provider of retail financial services," he added.
Nationwide expects UK interest rates to remain on hold for an extended period, with any increase in rates not expected until 2013.
