Nationwide profits dip 18%

However, the mutual’s reported profit increased during the six months to 30 September and it took a large share of the UK savings market. Nationwide saw its underlying profit before tax fall from £394m in the first six months of 2007/08 to £322m in the same period this year. The group says the fall in profits is primarily due to the high cost of retail funding and its decision to hold high liquidity levels in a turbulent financial market. Reported profit before tax climbed 11% to £339m. However, the credit crunch and consequent failure of a number of banks has caused a ‘flight to safety...