Nationwide, which is one of the biggest building societies, has said that its profits have doubled as it continues to record strong growth in new business.

Nationwide chief executive, Graham Beale has dismissed claims made by former Co-op boss, Peter Marks that it will be difficult for a mutual to be a really serious competitor in the retail banking market following the troubles faced Co-op's by Co-op bank.

"We are making tangible progress in growing our market shares and continue to demonstrate that we offer a real, consistent and viable alternative to the UK banks. We are a `really serious competitor'," Mr Beale said.

He pointed out that Co-op Bank has just reported a loss of £700 million while on the other hand, Nationwide recorded profits of £332 million, which is 2.5 times recorded in the previous year. After adjusting for one-offs and accounting issues, the pre-tax profits were recorded at £270 million compared to £103 million in the previous year. The society's underlying income grew 25 per cent to £1.4 billion during the period compared to the same period of the previous year.

Mr Beale also pointed out that society recorded profits all through the financial crisis.