Nationwide chief criticises bank levy changes as unfair on smaller lenders

Building society unveils 50% rise in profits in first quarter but Graham Beale says budget tax change will have disproportionate effect on mutuals

The chief executive of Nationwide has criticised changes to the banking levy announced in the budget, saying that the scale-back will have a “disproportionate effect” on smaller lenders and would cost the customer-owned group £300m over five years.

The UK’s largest building society reported an increase in profit before tax of almost 50% for the first quarter of its financial year – from £253m last year to £379m for the the three months from April and June.

Related: Biggest banks welcome budget reduction in bank levy