British lender Nationwide will pay out £340m to some customers through £100 payments to their current accounts.
This comes after Nationwide today reported a 40% leap in annual profit driven by a run of Bank of England rate hikes.
The UK's largest building society said it would make the payments to 3.4 million eligible customers next month, adding that this will be its first such distribution and that the society aims to repeat this in future years.
Like rivals, Nationwide's income from lending leapt off the back of 12 Bank of England rate rises in a row, but it warned high inflation and an economic slowdown could still hit its finances.
The payment to customers' current accounts is an unusual move for a British lender, with companies typically returning cash to investors after annual results.
Nationwide chief executive Debbie Crosbie said the move was possible because the lender was a building society owned by customers.
"We don't see anyone else doing this - in the cost of living crisis, it was really important to give people cash where we could," Crosbie told reporters.
Customers will qualify for the payment automatically if they have a current account with Nationwide and one other product such as a savings account or mortgage with a balance of at least £100, Crosbie said.
The giant mortgage lender also forecast house prices would fall 4.5% this year and drop 12% by the end of 2024, adding activity was expected to remain subdued for the rest of the year.
Nationwide reported pre-tax profit of £2.2 billion for the year to April 4, up from £1.6 billion the previous year.
But it warned more customers could fall behind on loan repayments and it set aside £126m to cover possible soured loans, compared with the release of £27m of reserves the previous year.
