Nationwide has revealed a £340m payout to its membership on the again of a 40% enhance in annual earnings.

The UK's largest constructing society, which is owned by its clients, stated it will pay a £100 reward direct to the three.4 million eligible present accounts.

The Fairer Share Payment was due subsequent month, it stated, including that it meant to make additional annual distributions as long as they weren't detrimental to its monetary power.

The dividend was attributed to pre-tax earnings hitting £2.2bn within the yr to 4 April - up from the £1.6bn achieved over the earlier 12 months.

The efficiency was pushed by rising rates of interest over the yr which have boosted wider financial institution earnings as a complete as a result of Bank of England's battle in opposition to inflation.

Nationwide was not immune from most of the components which have shot up in value.

The lender stated a 4% rise in prices throughout the yr was largely resulting from inflation however it was in a position to mitigate among the extra payments it confronted by means of financial savings.

It additionally recognised that the persevering with cost of living crisis was taking a toll on its buyer base.

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Nationwide put aside an additional £126m to cowl the chance of unhealthy loans.

Net lending fell 10% over the 12-month interval, reflecting the harder economic system and sure influence of the now-reversed Liz Truss authorities mini-budget final September that noticed mortgage offers withdrawn quickly resulting from market mayhem.

Chief govt Debbie Crosbie stated of the annual outcomes: "We have delivered a strong financial performance by providing banking that is fairer, more rewarding and for the good of society.

"Our strongest monetary efficiency implies that we're in a position to launch the Nationwide Fairer Share Payment, in addition to the Nationwide Fairer Share Bond - with a extremely aggressive rate of interest on financial savings for our present members.

"We can do this because we're a building society, not a bank, and our profit is reinvested for our members' benefit."