NBS

Nationwide Building Society

Banks First-pass screen £1.4bn

330/1000 Overall fit

AI beneficiary 35% 25

Operating leverage 25% 28

Valuation 25% 30

Downside protection 15% 68

First-pass take

Traditional cyclical mortgage lender with strong capital (CET1 27.1%) but zero AI exposure, deteriorating operating leverage (costs +4.3% on flat revenue; cost-income ratio 51.9% vs 49.7%), and rising arrears (0.41% vs 0.32%) amid elevated rates.

Flags

no-valuation-datamutual-structurecyclical-mortgagesrising-arrearscost-inflationmacro-sensitive