Assets dominated by strongly performing prime residential mortgages. Good franchise in U.K. retail banking, particularly in residential mortgages and saving deposits. Sound funding and liquidity profiles. High systemic importance in the U.K. banking system. Concentrated exposure to the leveraged U.K. household sector. Moderate profitability at present due to margin pressures. Less geographic and business diversification than universal bank competitors. Standard&Poor's Ratings Services' outlook on Nationwide Building Society is stable, reflecting our base-case view that its good quality residential mortgage book will continue to support its risk profile, its risk-adjusted capital (RAC) ratio before diversification/concentration adjustments will steadily rise into the 7.0%-7.5% range in the coming 18-24 months, and its funding and liquidity profile will remain broadly unchanged. We
