Nationwide Building Society (LON:NBS) profits fell for the second year in a row, after a slump in mortgage lending.

The group cited “intense competition” as a reason for the weaker profits, with demand for savings and mortgage lending falling.

Nationwide reported a 7.3 percent drop in bottom line profits to £977 million, with net mortgage lending falling to £5.8 billion from £8.8 billion the previous year.

However, Nationwide said the figures were in line with its financial performance framework. The building society also said that it had given an extra £560 million in benefits to members.

Joe Garner, chief executive of Nationwide, said the building society was providing “outstanding sevice and great value, backed by record capital strength”.

He said: “As a mutual, without shareholders to reward, we were able to deliver £560 million in extra value to members during the year, as a result of the better rates, fees and incentives we can offer compared to the market average.”