Nationwide profits hit by bad debts
The UK's biggest building society said profits have been squeezed by bad debts and a hefty bill under the Government's savings protection scheme.
Nationwide's pre-tax profits for the year to April 4 were down 69% at £212 million as provisions for bad debts rose sharply to £394 million - margins have also been impacted by record low interest rates.
The building society also took a £241 million hit from its levy paid into the Treasury's Financial Services Compensation Scheme (FSCS).
Nationwide said this system was "illogical and unfair" because it was being punished with a bigger bill to reflect its larger share of the savings market despite being a lower risk business.
