One of the largest and most famous banks in Britain intends to distribute more than 340 million pounds sterling ($ 429 million) to its current account holders, after it recorded a significant jump in its annual profits, taking advantage of successive rises in interest rates, which increased the costs imposed on borrowers.
Nationwide Bank, one of the largest lenders in the country and one of the most famous British banks, announced that it will deposit 100 pounds (125 US dollars) in the current accounts of more than 3.4 million customers, during the next month.
The British press, in reports seen by Al Arabiya.net, quoted the bank as saying, “This distribution is the first of its kind in the history of the bank, but it aims to repeat it in the coming years.”
Bank “Nationwide” financial income from lending jumped 12 times after the successive rises in interest rates in the Bank of England, but the bank warned that rising inflation and economic slowdown may affect its financial conditions.
Paying into customers’ checking accounts is an unusual move for a bank, as companies and banks usually distribute cash to investors only after annual results.
Nationwide Bank chief executive Debbie Crosby said the move was possible because the lender was a customer-owned building community.
“We don’t see anyone else doing that,” Crosby added. “In the cost-of-living crisis, it was really important to give people cash where we could.”
Crosby said customers would be eligible for this payment automatically if they had a current account with Nationwide and another product such as a savings or mortgage account with a balance of at least £100.
Nationwide Bank, which is considered the mortgage giant in Britain, expects house prices to decline by 4.5% this year and decrease by 12% by the end of 2024, adding that activity is expected to remain weak for the rest of the year.
The bank recorded pre-tax profits of 2.2 billion pounds for the year ending April 4, up from 1.6 billion pounds in the previous year.