LONDON, Nov 17 Reuters Nationwide Building Society reported record benefits for its customers in the first half of its financial year, including a 344 million pound 425.94 million payout and 885 million pounds of incentives on products below market rates.

The country39;s largest building society made 100 pound transfers into the current accounts of 3.4 million members in May, paying longstanding customers some of its profits from rising interest rates.

The memberowned lender, which competes with Britain39;s big banks but does not have to prioritise shareholder returns, on Friday said profit for the six months to Sept. 30 rose to 989 million pounds from 969 million pounds a year earlier.

While higher central bank policy rates have lifted lenders39; profits in Britain, they have also pressured households already grappling with higher costs on goods as well as mortgages.

Nationwide said credit impairment charges were down at 54 million pounds from 108 million in the first half of the previous year but warned that borrowers still face higher interest rates, continued inflationary pressures and the uncertain economic outlook.

Activity in the housing market is expected to remain subdued in the short term, Nationwide said, but income growth and lower fixedrate mortgage rates could help to improve housing affordability over time.

1 0.8076 pounds

Reporting by Lawrence White Editing by David Goodman

Source Reuters