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4th March 2008, 18:02
| #1 (permalink) |
| Classic Account Holder |  Does Nationwide make too much or too little money? I notice this board tends to be a little slow so I thought I would make a bit of a different contribution. I have noticed people making comments on this site about Nationwide's profits and its mutual status. People say there is no reason why Nationwide cannot offer the best rates across the board and I agree with this up to a point. There are always going to be competitors who may be prepared to operate on a very slight margin in order to increase thier market share - the equivalent of the supermarkets 'loss leader'. I can understand the frustration of people who refer to Nationwide as a bank in all but name because I do not agree with some of the things Nationwide is doing (not least charges, why don't we just tattoo the people who can't be offered credit etc?). Be that as it may there are other factors to consider. Nationwide & Brittania pretty much ARE the mutual sector in the UK. If they do badly the sector does badly because they are so large comparative to the rest of the building societies. Like any large organisation Nationwide sets certain goals each financial year. I cannot recall what amount of profit the organisation is shooting for this year but, whatever it is, it would only be a fraction of what the big banks make. The banks report thier profit in BILLIONS, and Nationwide is still working in millions. I know this sort of talk isn't going to garner much sympathy from the man or woman in the street but bear in mind I'm on an ordinary wage too. All I am saying is that, no matter the stuff I disagree with, I can see where people within the organisation are coming from when they say Nationwide needs to make more money. If the banks profits keep increasing, and mutuals increase at a smaller rate, it is arguable only a matter of time before they become irrelevent. I think I'll leave it at that and see what people have to say (keep in mind I DON'T think Nationwide is perfect, I am just thinking out loud here).
__________________ The views I express here are mere speculation based on my experience. I am not qualified nor insured to give legal advice and any action you take will be at your own risk. |
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23rd May 2008, 20:32
| #5 (permalink) |
| Classic Account Holder | Re: Does Nationwide make too much or too little money? To hopefully add to the (non-existant) discussion Nationwide reported profits of £686.1 million for the year. If we take out the costs associated with the merger with Portman Building Society (which IMHO WAS a takeover not a merger) profits were up 17% to £781.1 million. You can see how this supports my point earlier, the underlying profits are up significantly, yet they pale in comparison to competitors. |
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