NATIONWIDE has reported a fall in statutory profits after taking steps to protect savers and help mortgage borrowers after last summer’s cut in interest rates, while declaring it is well placed to support its members through the uncertainty arising from Brexit.

And the mutual declared it may open further branches, revealing it had opened a branch on a trial basis in Glastonbury in response to community demand, bucking the wider trend of closures across the banking sector.

Nationwide, which acquired Dunfermline Building Society for £1.6 billion in 2009, said statutory profits fell nearly 18 per cent to £1.05bn in the year ended April 4. It was the third year in a row that the society had reported profits of more than £1bn. However profits were down on the year before because of competition in the market and “decisions to deliver value back to members”.

While the Bank of England cut the previously historically low base rate of 0.5 per cent to 0.25 per cent after the Brexit vote, Nationwide said it chose to mitigate the effect on customers. Chief executive Joe Garner said the mutual had been able to shelter customers from the effects of the base rate cut because of its “success in attracting and retaining members”.

“Our success this year allowed us to improve our capital strength and continue to invest to grow the Society,” Mr Garner said. “At the same time, we were able to give back £505 million to members which included maintaining selected savings rates while passing on the base rate decrease in full to mortgage borrowers. The combination of the low interest rate environment and our decisions to protect savings for longer led to an exceptional year for member value.”

Nationwide highlighted the value its members see in its branch network by confirming plans to invest £80m in upgrading its branches this year. It has also opened a branch on a trial basis in Glastonbury, Somerset, in response to customer demand. Asked if the mutual would consider opening further branches in Scotland, a spokeswoman said it would assess how the Glastonbury branch performs before any decisions are made. The mutual has 47 branches in Scotland, employing 939 staff. Mr Garner said: “If successful, we may choose to open other branches where there is demand from a community.”

Nationwide reported strong growth in current account openings, gross mortgage lending, and member deposit balances.

The mutual said account openings had leapt by 35 per cent to a record 795,000, and achieved its highest ever share of the main standard and packaged current account market at 7.5 per cent, up from 7.1 per cent.

Member deposit balances increased by £5.8bn or 8.2 per cent, having risen by £6.3bn or 8.7 per cent in the prior year.

Meanwhile the mutual, which achieved record membership of 15m – one million of whom are in Scotland – reported gross mortgage lending up three per cent to £33.7bn.

Mr Garner said: “As a mutual, our business is underpinned by a social purpose, and we are determined to use our success to deliver long-term value to members and communities.

“As Brexit negotiations get under way, these strong results ensure that we are well placed to support members through the uncertainty that lies ahead.”