Nationwide Likely to Cut More Jobs this Year

Nationwide Likely to Cut More Jobs this YearNationwide Building Society has reported a 50% reduction in the annual profits due to the unchanged low interest rates.

The building society has estimated a huge stability in the nation's housing market over the next six to 12 months coupled with an increase in the property supply which is likely to ease the pressure on the prices.

Nationwide posted pre-tax profits worth £212 million, during the year, which is 46% lower than last year's £393 million.

It signaled further job losses from the total strength of 15,800 workers. However, it said that it is pretty early to provide any details on this.

The group is also planning to turn down the number of branch and retail distribution outlets from 1000 to 980.

It witnessed nearly 800 laying off last year and closed 12 branches. This was due to mergers with the Derbyshire and Cheshire building societies coupled with acquisition of Dunfermline's savings assets.

Today's dip in the profits came in the wake of 0.5% bank base rate, which has been marked as record low.

The net outflows in the Nationwide amounted to £8.2 billion.

Graham Beale, Chief Executive of Nationwide, said, " This is a strong set of results for Nationwide, and that is particularly pleasing given the difficult trading environment that we have experienced over the past year".