The Nationwide Building Society has posted improved profits as it reported its half-year results. Its underlying profit was £147 million, up 26%.

Nationwide lent £6 billion of mortgages during the first half of the year, representing a market share of 8.5%, slightly up on this period last year (8.3%).

The mutual’s total impairment charge on loans and advances to customers has reduced by 44% to £179 million, while commercial property impairment charges were down 47% to £95 million.

Nationwide-originated residential mortgage accounts more than three months in arrears were 0.67%, less than a third of the Council of Mortgage Lenders industry average of 2.15%.

The UK’s largest building society predicted that buyer activity would remain weak, although it believes that large house price falls of the magnitude seen in 2008 are “unlikely”” given that interest rates will remain low and limit the level of mortgage arrears and distressed sales.”