Nationwide has revealed its plans to distribute £340 million directly to members as part of the "Fairer Share" initiative introduced by newly appointed CEO Debbie

Crosbie, who emphasizes the organization's commitment to its mutual status. Under this scheme, 3.4 million members with current accounts will receive a £100 payment each. Additionally, members will have the opportunity to benefit from a two-year savings bond offering a 4.75% interest rate.

The building society's annual profits surged by 40% to reach a record-breaking £2.22 billion, attributed to the rise in interest rates, which has increased the disparity between savings and loan rates.

Crosbie expressed her delight in being part of a mutual organization, highlighting the value Nationwide delivers to its members, asserting that banks cannot compete in this regard.

While acknowledging that members may come to expect an annual payout, even during less prosperous times for the society, Crosbie affirms the intention to continue offering such benefits every year.

The funds will be directly deposited into members' accounts next month.

In contrast, John Lewis, a similarly structured partnership, has had to suspend its bonus payments to staff due to business challenges.

Nationwide's share of the mortgage market has slightly decreased from 11.8% to 10.8%, indicating that rival entities have presented unsustainable deals, prompting the society to take a more cautious approach. Nationwide acknowledges that it is unlikely to follow in the footsteps of Skipton by offering a 100% mortgage deal.

Crosbie explains that the market is highly competitive, and the decision has been made to refrain from pursuing large volumes.

Deposits have risen by £9 billion to reach £187 billion, a notable increase when major banks are reporting outflows.

Although there has been a slight rise from the previous year, only 1.21% of customers are more than three months behind on mortgage payments. Photo by Kenneth Allen, Wikimedia commons.