A NEW player in the small business lending market is set to emerge after building society Nationwide today unveiled plans to build up a range of services in the coming years.

Nationwide, which has previously only hinted at providing financial services to small and medium-sized enterprises (SMEs), said it wanted to play an increasing role in providing credit to an "important part of the UK economy".

The move comes at a time when SME lending remains under the spotlight following pressure on Britain’s top five banks to provide more credit to struggling businesses.

Nationwide confirmed the plans as it revealed a 10% rise in underlying profits to £304m on a 10% rise in underlying income to £2.1bn.