Last checked at 13 Sep 2019 07:00
13 September 2019
NATIONWIDE BUILDING SOCIETY (THE "SOCIETY")
UPDATE ON PAYMENT PROTECTION INSURANCE
Following the deadline for filing complaints relating to past sales of Payment Protection Insurance (PPI) on 29 August 2019, and in light of recent industry announcements, Nationwide Building Society is today providing an update on PPI provisioning.
Provisions for redress in relation to PPI recognised at the Society's financial year end on 4 April 2019 anticipated an increase in claims towards the deadline. However, in line with experience in the broader market, the Society received a higher than anticipated volume of complaints and enquiries in the period immediately before the deadline. Whilst the quality and therefore outcome of these complaints and enquiries remains uncertain, the Society now estimates that an incremental charge will be made, in addition to the provision as at 4 April 2019, in the range of £20 million to £50 million.
The processing of complaints and enquiries continues, hence the ultimate provision recognised could be above or below this range. The upper end of this provisional estimate is not significant to the Society's financial position, representing circa 15 basis points and 2 basis points on the CET1 and leverage ratios respectively.
The estimated range amounts are preliminary and unaudited.
For further information please contact:
Investor queries: Alex Wall, 020 72616568 or 07917 093632, alexander.wall@nationwide.co.uk
Media contact: Sara Batchelor, 01793 657770 or 07785 344137, sara.batchelor@nationwide.co.uk