Nationwide Building Society · LSE:NBS
Nationwide Building Society — Q2 2025 Earnings Presentation
32 slides from Nationwide Building Society's earnings presentation, Nov 27, 2024
Slide 1: Interim Results Presentation
" nationwide Interim Results Presentation for the six months ended 30 September 2024
Slide 2: Continued strong progress against our strategy
Continued strong progress against our strategy More rewarding relationships Create deeper, lifelong relationships with our customers, that provide the best value in banking vy Record H1 balance growthin mortgages and retail deposits vy Attracted 1 in 6 of current account switchers vy More than doubl
Slide 3: Virgin Money acquisition aligns with our mutual ambitions
Virgin Money acquisition aligns with our mutual ambitions %@ Scale Diversification Value for members The UK’s second largest provider of Broadening our reach and increasing our Astrong business case, delivering immediate mortgages and retail deposits! financial resilience and long-term returns >£370
Slide 4: Financial update
Financial update Nationwide Building Society, six months ended 30 September 2024
Slide 5: Financial performance remains strong
Financial performance remains strong en H1 24/25 H1 23/24 * Net interest income decreased by £261m in line with expectations, primarily driven by the timing of Bank base Net interest income 2,076 2,337 (11%) rate changes and reducing mortgage margins. Net other income 53 2 (53%) * Underlying costs i
Slide 6: We maintain a low risk, strongly capitalised balance sheet
We maintain a low risk, strongly capitalised balance sheet en Ebillion 30 Sep 24 4 Apr 24 The increase in residential mortgage balances Residential ti 210:! 2041 % P P esidentiat mortgages Os ° 3% reflects record H1 net lending growth in the Retail unsecured 39 38 3% period. Public sector! 5.4 5.2 4
Slide 7: Net interest margin stabilising
Net interest margin stabilising a Net interest margin movements, H1 2023/24 through to H1 2024/25 % 1.66 (0.41) 0.02 0.02 146 0.06 (010) (0.01) 0.01 (010) (on (0.03) H1 23/24 Retail Retail Retail Other H2 23/24 Retail Retail Retail Other H1 24/25 lending funding funding’ lending funding funding! BBR
Slide 8: 1.2 • 0.8 0.6 0.4 • 0.2 -50 -100 • • • 8
1.2 250 • 200 1 150 0.8 100 0.6 50 0.4 0 • 0.2 -50 0 -100 • • • 8
Slide 9: Retail deposits performance
Retail deposits performance Retail deposit mix', % £181bn £187bn £191bn £193bn £202bn 19% 18% 16% 15% 15% 62% 57% Ht H2 HI H2 Ht 22/23 22/23 23/24 23/24 24/25 = Variable rate =Fixed term Personal Current Accounts Average deposit balances’, £bn, gross margin trend, % 300 112% 117% 0.52% 250 (¢.99%) (
Slide 10: Continued cost discipline
Continued cost discipline Business as usual 3.7% Investment & depreciation 370 369 0.3% Cost excluding restructuring 1,146 1,117 2.6% Restructuring! 8 (2) - Underlying costs 1,154 1,115 3.5% Virgin Money acquisition 26 - - Total costs 1,180 1,115 5.8% Includes colleague severance costs, asset impair
Slide 11: Stable credit performance
Stable credit performance Mortgages Unsecured Retail lending Total balances (€m) 210,842 204,467 4,293 4,263 Provision balances (€m) 317 321 409 436 3m+ arrears! (%) 0.42 041 1.24 136 3m+ arrears industry average? (%) 0.93 0.94 Total negative equity balances (€m) 69 124 Negative equity (€m) " 13 For
Slide 12: Liquidity analysis
Liquidity analysis LCR Pillar 1, 12m rolling average!, % 210% 200% 190% 180% 186% 170% 160% 150% Sep Mar Sep Mar Sep 2022 2023 2023 2024 2024 Total liquidity resources, £bn 79 Liquidity Uninsured deposits 4 Apr 2024 = Deposits in excess of £85k FSCS limit Liquid assets, £bn 60 50 40 30 20 10 Liquidi
Slide 13: Robust wholesale funding position supported by strong credit ratings
Robust wholesale funding position supported by strong credit ratings Wholesale funding issuance’, FY to date, £bn Wholesale funding portfolio by instrument!, % * We have repaid £164bn of TFSME ahead of 2% P 0 0 XK 1% contractual maturity, leaving £5.3bn of drawings 5% outstanding. 28 08 20 B P P a T
Slide 14: Capital position as at September 2024
Capital position as at 30 September 2024 Risk-weighted capital Leverage ratio MREL (% of RWAs) (% of leverage exposure) (% of leverage exposure) ‘£18.3bn £98bn £8.5bn £17.2bn £11.0bn £6.2bn £249bn = £19.3bn £5.6bn 67% 98% a SNP 26% 5 24% 755% 43% Wee Leverage Buffer cet cet Resources Requirement Sur
Slide 15: Financial update
Financial update Nationwide group, 1 October 2024
Slide 16: Virgin Money acquisition: day one impacts
Virgin Money (VM) acquisition: day one impacts “a Financial = $5. Ibn ~—- £(2.8)bn +£2.3bn ow LL.8bni imp acts Net fair value of VM assets Acquisition price Gain on acquisition CET1 accretive Balance sheet 19.6% 5.4% 153% metrics CETI ratio Leverage ratio Liquidity Coverage Ratio’ Group CETI ratio e
Slide 17: Positioning to be the UK's first full-service mutual banking provider
“anationwide & MONEY * Delivering scale: connecting us to one in three of the UK population Stronger. Together. A unique opportunity, underpinned by an exceptionally strong business case A long-term, measured and Positioning to be the UK’s first full-service mutual banking provider 7
Slide 18: “ nationwide
“ nationwide
Slide 19: Appendix
Appendix
Slide 20: Multiple economic scenario assumptions
Multiple economic scenario assumptions a Scenario & weighting Variable (%) 2024 2026 average! Unemployment rate, % “ . 10 23 16 16 E 92 O7 GDP growth ; ; 9 Upside 10% Base rate 48 40 40 53 40 8 (4 April 2024: 10%) HPI growth 41 51 39 225 06 7 Unemployment rate 42 40 40 44 40 CPI inflation 17 18 20 3
Slide 21: IFRS staging and provisioning by portfolio
IFRS 9 staging and provisioning by portfolio Owner-occupied mortgages! Buy-to-let & legacy Unsecured 30 Sep 24 30 Sep 24 30 Sep 24 Provision Balance Provision Provision Provision Provision Provision coverage ( fad coverage coverage coverage coverage” coverage” (%) (%) (%) (%) (%) (%) Stage1 154,648
Slide 22: LTV distribution of residential mortgage portfolios
LTV distribution of residential mortgage portfolios a Loan book balances (by value): 30 September New business! (by value): H1 2024/25 Owner-occupied BTL & legacy Owner-occupied BTL & legacy <50% 641 39 141 32. -782~=—i 0-60% 34 23 09 38 43 24 50-60% 278 17 116 2 4 4394~=—«19 60-75% 34 21 20 62 51 2
Slide 23: Mortgage portfolio refinancing profile
Mortgage portfolio refinancing profile a Fixed rate maturities, owner-occupied portfolio, £bn sen ae * Approximately 54% of fixed rate in . + £12bn 6% balances across the residential €10bn 5% mortgage book have refinanced since £8bn 4% September 2022. £6bn 3% £4bn 2% * Stressed interest rates at the
Slide 24: Structural hedge and NII/EVE sensitivity analysis
Structural hedge and NII/EVE sensitivity analysis ne Structural hedge Structural hedging programme 50 25% * We undertake structural hedging of our CCDS, reserves and stable! personal current account balances to smooth income volatility from 40 2.0% short-term changes in interest rates. 30 15% * We f
Slide 25: We remain active in core wholesale term funding markets
We remain active in core wholesale term funding markets “a Public wholesale issuance by trade, financial year to date 2024/25 Currency Notional (C Trade date 10yr EUR 500m April 2024 Covered bond (dual tranche) 3yr & 10yr EUR 1,000m April 2024 RMBS (Silverstone) 3yr GBP 600m June 2024 Senior Non-Pre
Slide 26: Responsible Business
Responsible Business
Slide 27: Our ESG ratings remain strong
Our ESG ratings remain strong “a M S ( | Moody’s ESG Assessment 62 Oto100 July 2023 ESG Rating! ISS ESG Rating C+, Prime At to D- September 2023 DP Cli h ct Climate Change B Ato D- February 2024 A" N \ Disclosure S&P Global ESG Score 54 Oto 100 February 2024 Leader We're also rated by Morningstar Su
Slide 28: Our Mutual Good Commitments underpin our strategy
Our Mutual Good Commitments underpin our strategy “@ Demonstrating how our business supports the UN Sustainable Development Goals (SDGs) More rewarding relationships We will help more people into safe and secure homes, both our customers who have relationships with us and more broadly. Simply brilli
Slide 29: We have published our net-zero-aligned Transition Plan
We have published our net-zero-aligned Transition Plan “a We continue to deliver actions detailed within our Transition Plan, and report progress against our intermediate (by 2030) science-based targets Greening our own business operations + Removed gas from over 80% of our branches and in the proce
Slide 30: We continue to enhance our climate risk capabilities
We continue to enhance our climate risk capabilities “a Completing an internal climate scenario analysis exercise and considering how nature-related risk is incorporated into our Enterprise Risk Management Framework Cause Climate change is considered across Nationwide’s entire Enterprise Risk Manage
Slide 31: 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 sarah.abercrombie@nationwide.co.uk vikas.sidhu@nationwide.co.uk 3
Slide 32: 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
Nationwide Building Society — Q2 2025 Earnings Presentation on 6ix