Strong franchise in U.K. residential mortgages and retail savings Differentiated market position through mutual status Sound funding and liquidity profiles Robust capital ratios, but no equity market access Strong relative asset quality indicators Concentrated exposure to the leveraged U.K. household sector Impairment losses will rise as the U.K. economy and housing market deteriorate Moderate earnings generation, reflecting mutual pricing policy Nationwide Building Society is the U.K.'s seventh-largest financial institution by reported assets, and the second-largest provider of residential mortgages and retail savings. It is also by far the largest U.K. building society. Capitalization, liquidity, and funding positions compare well with peers'. Nationwide's core Tier 1 ratio was a healthy 8.1% at April 4, 2008, and should remain broadly stable, which
