Business
Preliminary Results Announcement 2018/19
Preliminary Results Announcement 2018/19.
About this update from Nationwide Building Society
[{"type":"text","content":"\n \nRNS Number : 6206Z Nationwide Building Society 21 May 2019 \n\n \n \n \n \nNationwide Building Society\n \n \n \n \nPreliminary Results Announcement\nFor the year ended\n4 April 2019\n \n \n \n \n \n \nCONTENTS\n \n\n\n\n\nKey highlights and quotes\n\n\n3\n\n\n\n\nFinancial summary\n\n\n4\n\n\n\n\nChief Executive's review\n\n\n5\n\n\n\n\nFinancial review \n\n\n7\n\n\n\n\nBusiness and Risk Report\n\n\n15\n\n\n\n\nConsolidated Financial Statements\n\n\n63\n\n\n\n\nNotes to the consolidated financial statements\n\n\n68\n\n\n\n\nResponsibility statement\n\n\n85\n\n\n\n\nOther information\n\n\n85\n\n\n\n\nContacts\n\n\n85\n\n\n\n\n \nUnderlying profit\n \nProfit before tax shown on a statutory and underlying basis is set out on page 4. Statutory profit before tax of £833 million has been adjusted to derive an underlying profit before tax of £788 million. The purpose of this measure is to reflect management's view of the Group's underlying performance and to assist with like for like comparisons of performance across periods. Underlying profit is not designed to measure sustainable levels of profitability as that potentially requires exclusion of non-recurring items even though they are closely related to (or even a direct consequence of) the Group's core business activities. The components of underlying profit have changed in the period to more accurately reflect underlying performance. For more information see page 8 of the Financial review.\n \nNationwide has developed a financial performance framework based on the fundamental principle of maintaining its capital at a prudent level in excess of regulatory requirements. The framework provides parameters which allow it to calibrate future performance and help ensure that it achieves the right balance between distributing value to members, investing in the business and maintaining financial strength. The most important of these parameters is underlying profit which is a key component of Nationwide's capital. We believe that a level of underlying profit of approximately £0.9 billion to £1.3 billion per annum over the cycle would meet the Board's object...