Annual profit by Nationwide, Britain's biggest building society, skyrocketed 39 per cent as rising interest rates drove the UK lender's profit up, but its chief executive warned of the impact of higher borrowing costs on customers
Nationwide paid out £340m to its customers after a 40% rise in earnings last year.
The building society also announced it was handing out a "fairer share payment" under the outcome, which will see each eligible member get £100 each, worth a total of £340 million.
"The transition to higher interest payments is a challenge for households as they adjust their expenditure priorities," - Debbie Crosbie
Debbie Crosbie is a British banker,
Dividend payments were driven down by a pre - tax profit of £2.2billion in the year to April 4 from £1.6billion in the previous 12 months.
Like other lenders, Nationwide has said it has benefited from the increased interest rate.
The rally was driven by increases in interest rates throughout the year, driving up bank earnings overall as a result of the Bank of England's battle with inflation.
Nationwide said this was due "a deterioration in the economic outlook during the year," whilst it forecast low turnouts.
"We have delivered a strong financial performance by providing banking that is fairer, more rewarding and for the good of society," - chief executive
Commenting on annual results, the RBA governor Debbie Crosbie said: "We have delivered a strong financial performance by providing banking that is fairer, more rewarding and for the good of society.