Nationwide Building Society has reported record benefits for its customers in the first half of its financial year, including a £344m payout and £885m of incentives on products below market rates.
The UK's largest building society made £100 transfers into the current accounts of 3.4 million members in May, paying longstanding customers some of its profits from rising interest rates.
The member-owned lender, which competes with Britain's big banks but does not have to prioritise shareholder returns, said today that profit for the six months to September 30 rose to £989m from £969m a year earlier.
While higher central bank policy rates have lifted lenders' profits in Britain, they have also pressured households already grappling with higher costs on goods as well as mortgages.
Nationwide said credit impairment charges were down at £54m from £108m in the first half of the previous year but warned that borrowers still face "higher interest rates, continued inflationary pressures and the uncertain economic outlook".
Activity in the housing market is expected to remain subdued in the short term, Nationwide said, but income growth and lower fixed-rate mortgage rates could help to improve housing affordability over time.
