Nationwide saw its profits double in the year to April but warned surging inflation could dent the economy and lower house prices.
Nationwide reported a pretax profit £1.6bn for the year ended April 4, up from £823m during the same period last year.
Its finances were lifted by a strong economic recovery from pandemic lockdowns, including a £6.9bn leap in gross mortgage lending.
But CEO Joe Garner warned price rises were starting to hurt customers, with inflation hitting levels not seen since the 80s due to ever-increasing fuel prices and global supply chain disruptions.
“The emergence of higher inflation, which has been exacerbated by the war in Ukraine, is likely to exert a significant drag on the economy in the near term,” Garner said.
It was Garner’s last set of results at the helm before handing over the reins to former TSB chief executive Debbie Crosbie on June 2.
However, the lender cautioned the housing boom may not last.
“There is a risk of a downward movement in house prices, given the pressure on household budgets,” the lender warned.
