Strong position in the U.K. mortgage and retail savings markets enhanced by mutual status and pricing policy; Good quality residential loan book; Controlled growth of other lending; and Solid capital ratios. Absolute profitability is low, reflecting the mutual pricing policy; Business reliant upon the strength of the U.K. household sector; and Bulk of business is housing market related. The ratings on Nationwide Building Society reflect its strong position in the U.K. mortgage and savings markets, and good asset quality. Asset growth has been brisk over the past two years, but capitalization and funding continue to compare well with peers. Underlying profitability remains satisfactory, despite the strategy of rewarding members through competitive pricing, and is benefiting from efficiency initiatives. Being the
