Nationwide Building Society (NBS.L) | Investment Case

1. Company Snapshot

1.a. Company Description

Nationwide Building Society, together with its subsidiaries, provides retail financial services in the United Kingdom.The company offers current, savings, and individual savings accounts; residential mortgages; overdrafts, personal loans, car loans, and home improvement loans; and credit cards.It also provides loans to registered social landlords, loans made under the private finance initiatives, and commercial real estate loans.

In addition, the company offers home, life, income protection, travel, mobile phone, and breakdown insurance; and investment products and services, such as financial planning services.Further, it provides treasury liquidity, derivative, and discretionary services; and mobile and Internet banking services.The company was founded in 1846 and is headquartered in Swindon, the United Kingdom.

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1.b. Last Insights on NBS

Nationwide Building Society's recent performance was negatively impacted by a decline in mortgage lending and interest rates. The company's average house price premium for homes within 5km of a National Park (£18,700) may have reduced demand for mortgages in these areas. Additionally, the recent increase in UK house prices (4.7% year-on-year in December) may have led to a decrease in affordability, further reducing mortgage demand. The company's focus on credit card deals and rewards may not be enough to offset these negative trends.

1.c. Company Highlights

Last Price	130.5
Change Percentage	0.00%
Open	130.88
Previous Close	130.5
Market Cap ( Millions)	1190
Volume	770
Year High	133.5
Year Low	126.5
M A 50	130.23
M A 200	130.85

FCF Yield	25.45%
Dividend Yield	0.00%
ROE	12.68%
Debt / Equity	274.99%
Net Debt / EBIDTA	2448.37%
Price To Book	0.06
Price Earnings Ratio	0.52
Price To FCF	3.93
Price To sales	0.07
EV / EBITDA	25.66

2. Transcript Summary

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3. NewsRoom

BOE Stress Test 2025: Have BCS, HSBC & Others Proved Resilience?

Dec -03

Source:

Annual house price growth slowed in November – Nationwide Building Society

Dec -02

Source:

Average UK house price rises to £272,998 in November

Dec -02

Source:

Exploring Undiscovered Gems in the UK for December 2025

Dec -01

Source:

Nationwide Building Society sees transactions jump on Black Friday

Nov -28

Source:

Undiscovered Gems in the UK to Watch This November 2025

Nov -27

Source:

Undiscovered Gems in the UK for November 2025

Nov -26

Source:

Discover James Halstead And 2 Other Undiscovered Gems In The UK Market

Nov -24

Source:

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.30%)

6. Segments

Banking and Related Activities

Expected Growth: 5.3%

Nationwide Building Society's Banking and Related Activities segment is expected to grow driven by increasing demand for digital banking services, rising adoption of online banking, and growing need for convenient and accessible financial services.

7. Detailed Products

Mortgages

Nationwide Building Society offers a range of mortgage products to help customers buy, remortgage or move home.

Savings Accounts

Nationwide offers a variety of savings accounts, including instant access, fixed rate bonds, and ISAs.

Current Accounts

Nationwide's current accounts offer a range of features, including debit cards, online banking, and mobile banking.

Credit Cards

Nationwide offers a range of credit cards, including cashback, balance transfer, and purchase cards.

Loans

Nationwide offers personal loans for a range of purposes, including debt consolidation, home improvements, and weddings.

Insurance

Nationwide offers a range of insurance products, including home, life, and travel insurance.

Investments

Nationwide offers a range of investment products, including ISAs, bonds, and pensions.

8. Nationwide Building Society's Porter Forces

Forces Ranking

Threat Of Substitutes

Nationwide Building Society operates in a highly competitive market, with many alternative financial institutions offering similar products and services. However, the company's strong brand reputation and customer loyalty mitigate the threat of substitutes to some extent.

Bargaining Power Of Customers

Nationwide Building Society's customers have significant bargaining power due to the availability of alternative financial institutions and online comparison platforms. This forces the company to maintain competitive pricing and high-quality services to retain customers.

Bargaining Power Of Suppliers

Nationwide Building Society has a diverse supplier base, and no single supplier has significant bargaining power. The company's large scale of operations also gives it negotiating power over suppliers.

Threat Of New Entrants

The UK financial services market has significant barriers to entry, including regulatory hurdles and high capital requirements. This limits the threat of new entrants and allows Nationwide Building Society to maintain its market position.

Intensity Of Rivalry

The UK financial services market is highly competitive, with many established players competing for market share. Nationwide Building Society must continually innovate and improve its products and services to maintain its market position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	77.01%
Debt Cost	5.41%
Equity Weight	22.99%
Equity Cost	5.41%
WACC	5.41%
Leverage	334.89%

11. Quality Control: Nationwide Building Society passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

SpareBank 1 Ringerike Hadeland

A-Score: 8.2/10

Value: 6.9

Growth: 8.4

Quality: 6.5

Yield: 9.4

Momentum: 9.0

Volatility: 9.0

1-Year Total Return ->

Crédit Agricole

A-Score: 6.7/10

Value: 9.1

Growth: 3.9

Quality: 6.1

Yield: 5.6

Momentum: 10.0

Volatility: 5.7

1-Year Total Return ->

Aktia

A-Score: 6.7/10

Value: 4.8

Growth: 4.6

Quality: 4.9

Yield: 10.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

Walliser

A-Score: 6.3/10

Value: 4.1

Growth: 4.9

Quality: 4.9

Yield: 5.6

Momentum: 8.5

Volatility: 10.0

1-Year Total Return ->

Nationwide

A-Score: 5.4/10

Value: 8.0

Growth: 5.7

Quality: 4.5

Yield: 0.0

Momentum: 4.0

Volatility: 10.0

1-Year Total Return ->

illimity Bank

A-Score: 4.4/10

Value: 9.0

Growth: 2.4

Quality: 3.0

Yield: 1.9

Momentum: 3.0

Volatility: 7.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

13.56%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.41%

Nationwide Building Society - GB00BBQ33664

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on NBS

1.c. Company Highlights

Lower Yield

Lower Quality

Cheaper

Less Volatile

Higher Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.30%)

6. Segments

Banking and Related Activities

Expected Growth: 5.3%

7. Detailed Products

Mortgages

Savings Accounts

Current Accounts

Credit Cards

Loans

Insurance

Investments

8. Nationwide Building Society's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Nationwide Building Society passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.3$

Current Price

1.3$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA