Nationwide Building Society · LSE:NBS

Nationwide Building Society — Q4 2025 Earnings Presentation

33 slides from Nationwide Building Society's earnings presentation, May 29, 2025

  1. Slide 1: Annual Results Presentation

    " nationwide Annual Results Presentation For the period 5 April 2024 to 31 March 2025

  2. Slide 2: An outstanding year for Nationwide

    An outstanding year for Nationwide “a Record organic Ree Record member Excellent financial vp Diversifying growth value performance with Virgin Money Y Record net mortgage v Record £2.8bn member Y Record statutory profit Y Bringing the benefits of lending of £15.5bn' value in FY 24/25 of £2.3bn mutu

  3. Slide 3: Our mutual model is delivering

    Our mutual model is delivering Our investment in a multi-channel approach is delivering leading customer service, enhancing value through record growth and supporting cost efficiencies Value through Convenience Enabled by branches through digital innovation 5.7 million customers used our Mortgage ap

  4. Slide 4: Financial update

    Financial update Nationwide Group, 5 April 2024 to 31 March 2025 (including Virgin Money, 1 October 2024 to 31 March 2025)

  5. Slide 5: Strong Group performance following acquisition of Virgin Money

    Strong Group performance following acquisition of Virgin Money a n FY 24/25 FY 23/24 A 5 A g } émition | vzaras | vane | * Nationwide delivered a record Group statutory profit of Net interest income 5,031 4,450 £23bn, up 30% on FY 23/24, reflecting strong underlying erformani hi in f he Virgin M Net

  6. Slide 6: Low risk, diversified and strongly capitalised Group balance sheet

    Low risk, diversified and strongly capitalised Group balance sheet a Ebillion 31 Mar 25 4 Apr 24 increased balances The acquisition of Virgin in our core markets and diversified the balance sheet. Money _ significantly * Mortgage balance growth also reflected record net lending of £15.5bn within the

  7. Slide 7: Underlying net interest margin stabilised, supported by Virgin Money

    Underlying net interest margin stabilised, supported by Virgin Money Group net interest margin movements, H2 23/24 through to H2 24/25, % | Coon, | — 012 1.60 156 155 0.02 150 0.06 0.04 1.46 (0.01) (0.01) a (0.03) (0.05) FY 23/24: H2.23/24 Retail Retail Retail! Other H1 24/25 Retail Retail Retail! V

  8. Slide 8: Retail mortgages performance

    Retail mortgages performance Group mortgage balances, £bn!? and market share, % Combined Group basis. i 276 1 204 202 202 204 2u ' 56 | tt tf 1 1 1 1 1 HI H2 HI H2 HI ' H2 22/23 22/23 23/24 23/24 24/25 24/25 mmm Nationwide Virgin Money Mortgage market share Group mortgage gross margin trend3, % Grou

  9. Slide 9: Customer deposits performance

    Customer deposits performance a Group customer deposit mix!, £bn Gas Average retail deposit rates (annualised), % i 1 282 6.0% 1 pei 5.0% 185 191 195 197 206 ! a 4 4 4 40% 4 1 2.91% i) 3.0% i 187 191 193 202 fh 2.0% sa. ! 10% tT 0.0% —~ Hi H2 Hi H2 Hit 2 te Dr DD PP PR Pe oP mr P # 4 es 4 vy YP gs P

  10. Slide 10: Continued strong cost discipline

    Continued strong cost discipline Business as usual 1,654 1,636 1% Investment & depreciation 748 736 2% Restructuring! 36 50 (28%) Provisions for liabilities & charges 1 127 (91%) Nationwide sub-group underlying costs* 2,449 2,549 (4%) Virgin Money underlying costs 698 - - Integration costs 36 - - Gr

  11. Slide 11: Stable credit performance

    Stable credit performance a Casumer Ausinassannl Evolution of loan book (%, LHS) and Cost of Risk” (bps, RHS) Mortgages + . Combined Portfolio lending commercial Group basis 100 t 50 31 Mar 25| 4Apr 24 | 31Mar 25 | 4Apr24 | 31Mar25 4 Apr 24 95 1 | | | aoe HE | 40 Total gross balances (£m) 275,926 20

  12. Slide 12: Business, commercial and consumer lending

    Business, commercial and consumer lending Business and commercial lending Consumer lending £14.8bn! 100% Other smaller 80% sectors Virgin Money Hospitality £9.5bn Business services 60% Gov't, Health & Education 40% oe CRE Nationwide 20% £5.3bn 0% By entity By sector * £14.8bn of assets (Nationwide,

  13. Slide 13: Group liquidity analysis

    Group liquidity analysis LCR Pillar 1, 12m rolling average’, % Combined Group basis 200% 190% 180% i} i} 170% 1 174% i} i} 160% 1 150% : Mar-23 Sep-23 Mar-24 Sep-24 Mar-25 Liquid assets, £bn Combined (e} 10 20 30 40 50 60 m™Cash mGovt&SSAbonds =Coveredbonds “RMBS&ABS. ‘Data points represent 12month

  14. Slide 14: Diversified wholesale funding position underpinned by strong credit ratings

    Diversified wholesale funding position underpinned by strong credit ratings "4 Wholesale funding issuance! 2, FY 24/25, £bn Wholesale funding portfolio by instrument! 2% 42% * We intend to issue c8-10bn sterling equivalent in a 65 4% | i range of currencies through FY 25/26; c.lbn sterling . a equiv

  15. Slide 15: Group capital evolution

    Group capital evolution Group CETI ratio evolution (% of RWAs) 41.6% (0.5%) (08%) (03% +13% Ln (10.7%) 0.5% (05%) (0.5%) (0.0%) (03%) (01%) 723%, 271% 19.1% NationwideNationwide Hybrid IRB Fairer © RWAs Other Nationwide Virgin Transaction Other Gainon’ Group Big RWAs Other Group 4Apr24 sub-group imp

  16. Slide 16: An outstanding year for Nationwide

    “anationwide & MONEY * An outstanding year for Nationwide Record Record organic member value in oo es il Inrelue ing Seller [ through the and retail U | shatelsaiine Big U | Virgin Money deposits Nationwice acquisition Underpinned by a strong financial performance 16

  17. Slide 17: Nationwide & Virgin Money

    “ nationwide

  18. Slide 18: Appendix

    Appendix

  19. Slide 19: Group multiple economic scenario assumptions

    Group multiple economic scenario assumptions ne Scenarios apply to both Nationwide and Virgin Money portfolios and provisioning Unemployment rate, % 10 nes ‘ree [=|=[=2 aa Lie | om | vo | average! 9 GDP growth 10.2 03 8 Upside 10% Base rate 45 43 7 (4 April 2024: 10%) HPI growth ba a5 3 rm 231 13 6

  20. Slide 20: IFRS staging and provisioning by portfolio

    IFRS 9 staging and provisioning by portfolio a Business and commercial Owner-occupied mortgages Buy-to-let & legacy mortgages ‘tanling Consumer lending 4 Apr 24 Provision Provision Provision Provision Provision Provision Provision Provision Balance coverage Balance coverage Balance coverage Balance

  21. Slide 21: LTV distribution of residential mortgage portfolios

    LTV distribution of residential mortgage portfolios a Loan book balances (by value) 31 March 2025 4 April 2024 * The proportion of balances by LTV is largely unchanged following the Virgin Money acquisition. * The average LTV of new business has increased to 9 <50% 99:5 36 uc 37 73% (2024: 70%) whic

  22. Slide 22: Mortgage portfolio refinancing profile

    Mortgage portfolio refinancing profile a Nationwide fixed rate maturities, owner-occupied portfolio, £bn 16 ae * Approximately 64% of fixed rate p 6% balances across the Nationwide 5% residential mortgage book have 8 4% refinanced since September 2022. 3% 4 2% * Stressed interest rates at the point

  23. Slide 23: Structural hedge analysis

    Structural hedge analysis Structural hedging programme - Group basis 80 3.0% Combined 70 Group basis ' 25% 60 ' T 2.0% 50 t i 40 BB _ f 15% i 30 | ' 1.0% 20 t 1 i te) 0.0% Sep 21 Mar 22 Sep 22 Mar 23 Sep 23 Mar 24 Sep 24 Mar 25 lm Nationwide notional balance (Ebn, LHS) mm Virgin Money notional balan

  24. Slide 24: Group capital position as at March 2025

    Group capital position as at 31 March 2025 en Risk-weighted capital Leverage ratio MREL (% of RWAs) (% of leverage exposure) (% of leverage exposure) £195bn —£149bn-£4.6bn g177Tbn —-£148bn—-£29bn £307bn — £260bn-£47bn * We maintain healthy buffers above minimum regulatory capital 23.8% . . ao% requi

  25. Slide 25: We remain active in core wholesale term funding markets

    We remain active in core wholesale term funding markets Public wholesale issuance by trade, FY 24/25! “a Tier 2 Covered bond (Nationwide) RMBS (Silverstone) Senior Non-Preferred Senior Preferred 10NC5 3yr & 10yr 500m 1,000m 600m April 2024 April 2024 June 2024 July 2024 July 2024 September 2024 _pre

  26. Slide 26: Issuing entity structure

    Issuing entity structure Nationwide Group Nationwide Building Society * Following the acquisition on 1 October 2024, Virgin Money UK PLC became a (Parent Company) wholly owned subsidiary of Nationwide Building Society. * The PRA has confirmed outstanding externally held own funds issued by Virgin Mo

  27. Slide 27: Responsible Business

    Responsible Business

  28. Slide 28: We have industry leading ESG ratings

    We have industry leading ESG ratings ESG ratings providers continue to recognise Nationwide’s! sustainability performance Sustainability MSCI AAAtoCCC November 2024 Yearbook Member S&P Global 64 Oto 100 May 2025 ISS ESG C+,Prime At+toD- January 2025 Corporate ESG CDP B Ato D- February 2025 Performan

  29. Slide 29: ESG ambitions and targets to make a difference

    ESG ambitions and targets to make a difference “a Our Mutual Good Commitments support the UN Sustainable Development Goals, and are set in areas we believe we can make the most significant, positive impacts for society @ We will offer customers a choice in how they bank with us, and support their fi

  30. Slide 30: Supporting net-zero as a full-service banking provider

    Supporting net-zero as a full-service banking provider “ The expansion of our business enables us to service a broader set of customers Supporting the greening of Enabling businesses to UK homes transition towards net zero Lending targets - Ambition to lend £750m to the energy and environment sector

  31. Slide 31: Having a meaningful impact in communities

    Having a meaningful impact in communities “a Focusing our impact on the issues that matter most to customers, businesses and society, in a way that only we can Nationwide Fairer Futures Our new social impact strategy partners with four charities to help tackle the biggest issues we see in society to

  32. Slide 32: Contact information

    Contact information Investor Relations a mailbox Investor Relations website Sarah Abercrombie Head of Treasury Funding & External Relations Vikas Sidhu Head of Investor Relations & Treasury Sustainability nationwide.treasury@nationwide.co.uk sarah.abercrombie@nationwide.co.uk vikas.sidhu@nationwide.

  33. Slide 33: Disclaimer

    Disclaimer a This presentation has been prepared by and is the property of Nationwide Building Society ("Nationwide") By attending this presentation or accepting this document you represent, warrant and agree that (i) you will not reproduce or transmit the contents (in whole or in part) of this pres

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