Nationwide Chief Steps Down On A High

Nationwide has announced a 54% rise in annual pre-tax profits while at the same time confirming that chief executive Graham Beale is to step down in the summer of 2016.

Mr Beale leaves the company after nine years at the top.

The company revealed that its core tier 1 ratio, a key measure of its financial strength, rose to 19.8% from 14.5% the previous year, higher than any major UK bank.

Nationwide's net mortgage lending during the year totalled £7.1bn, accounting for a 31.2% market share.

The lender's personal current account market share grew to 6.8% and the company continues to pursue its 10% target.

When he finally leaves next year, Mr Beale will have served nine years at the helm of the UK’s biggest building society, which saw him guide the lender through the 2008-9 financial crisis.

More recently he led the revamp of Nationwide’s branches and digital technologies in response to the changing demands of UK customers.

Talking about the current market conditions in 2015, Mr Beale was upbeat. He said he expected the house-buying market to be stronger this year than in 2014, when a number of factors had a negative drag, including measures to cool the buoyant London market and uncertainty over the outcome of the Scottish independence vote.

However, he warned that concerns over a potential UK exit from the EU could have a negative impact on the market.

"My expectation is that it will be a stronger market this year than last year. Provided that borrowers don't start to get concerned about the EU referendum, generally it's a more stable environment," he said.

It is understood that the Nationwide board will consider both internal and external candidates when looking for a successor to Mr Beale.