Nationwide, the UKs largest mutual, has announced a four-fold increase to its pre-tax annual profits to £677m ($1.1bn) for the year to 4 April against £168m for the previous year.
Nationwide said it had achieved the 3% leverage ratio set by the UK regulator the Prudential Regulatory Authority, a year earlier than expected.
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Last year, it missed the 3% target as it did not have sufficient capital and it was given until 2015 to increase its capital base and now has a leverage ratio of 3.3%.
Nationwide’s position was strengthened by a £4.9bn increase in savers’ deposits to £130.5bn, equal to a 12.1% share of the total savings market.
Graham Beale, CEO at Nationwide, said: "Our excellent financial performance and the successful achievement of a 3 percent leverage ratio, well ahead of plan, shows Nationwide has emerged from the financial crisis in better shape than ever."
Highlights for the bank include:
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By GlobalData- A rise in net interest margin of 1.25, compared to 1.02% in the previous year;
- Cost income ratio fell to 52.5% from 55.9%;
- Market share of current and packaged accounts increased to 6.2%;
- Total consumer banking rose by 11% £3.8bn, from £3.4bn, and
- Total income at the bank rose to £2.8bn from £2.5bn.
The banks saw a fall in its personal banking product sales £826m down from £848m in the previous year.
Total assets at the bank remained flat at £190bn.
Along with its annual results report Beale issued a warning that house prices in London may face a "natural correction".
Beale said there was already a "slowing down in the market place".
Nationwide has benefitted from the buoyant housing market, reporting it increased mortgage lending by 31% to £28.1bn in the year to 4 April.
The mutual said it had also approved 31% of all mortgages advanced within the government’s Help to Buy scheme, designed to help first-time buyers onto the property ladder.
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