The Nationwide Building Society’s chief executive, Graham Beale is to retire at or around the date of the mutual’s AGM in July 2016.

The Nationwide has reported record profits for the years 2014/15, with underlying profit up 32% at £1.216bn and statutory profit up 54% at £1.044bn.

During that period it became second largest mortgage provider, helping almost 46,000 first time buyers.

Nationwide has announced that it will invest £500 million in its branches over the next five years. This investment will see the re-definition of the branch with new layouts to enable more face to face conversations with members seeking help and advice from our experts. It will also see the roll-out of the Nationwide Now service to all branches; and new technology to help members who want to serve themselves.

Beale (pictured) said: “This is one of the strongest sets of results we have ever announced, demonstrating that, yet again, it is possible to build a successful business by doing the right thing. We have reached a level of profitability that will allow us to continue to invest in our business to improve our members’ experience and also to strengthen our balance sheet. This makes Nationwide one of the safest places on the high street for our members’ money.

“We think that reports of the death of the branch have been greatly exaggerated. Our members are telling us that they still want to be able to speak to someone face to face and that is why we are making a major investment in our branch network over the next five years. We are transforming the look and feel of our branches so that they provide the right space and environment for members to discuss their financial affairs with our consultants, as well as providing the latest technology whenever they want to serve themselves.

“Nationwide is in great shape and is demonstrating how a mutual building society can make a real and refreshing difference in the financial services sector. Succession of leadership is best dealt with from a position of strength and hence the time has come for the Society to identify and appoint its next chief executive. In the meantime, there is lots to do and there are exciting opportunities ahead.”

Nationwide’s chairman, Geoffrey Howe, said: “I would like to thank Graham for his enormous contribution to the success of this organisation. He has led the Society safely through the worst financial crisis in living memory and at the same time created a truly modern mutual, with the needs of our members at the forefront of all that we do. He has also positioned the organisation for a digital world – ready to embrace the future and continue to innovate for the benefit of our members. This is the right time to plan for the future and in the meantime Graham will continue to lead the Society and will remain, as always, focused on the job in hand.”