UK mutual lender can take on top banks, despite problems at Co-op

19 November 2013

The UK’s biggest customer-owned lender, Nationwide, reported strong financial performance this week and rejected suggestions that problems at rival Co-op showed mutuals could never take on the big banks.

“There are some rather silly things being said. When you look at our numbers from any angle we are more than a match for the established banks,” he told Reuters.

Nationwide, Britain’s third-biggest mortgage lender, said it made an underlying profit of 332 million pounds ($534 million) in the six months ended September, up from 130 million the year before.

Confidence in customer-owned businesses took a knock after a 1.5 billion pound ($2.4 billion) capital shortfall was exposed at Britain’s Co-operative Bank, resulting in it falling under the control of U.S. hedge funds.

Source, Nationwide throws down gauntlet to top UK banks, Yahoo! News, 15 Nov