Profits fell to £212m from £393m a year earlier.
The building society warned that low interest rates will continue to affect profits in the coming year.
The UK’s biggest building society warned of further job losses and branch cuts as it looks to reduce administration costs.
Last week Nationwide launched an advertising campaign featuring characters from comedy sketch show Little Britain in a bid to distance the building society from high street rivals by highlighting its mutual status.
Nationwide has also reintroduced the strapline “Nationwide. Proud to be different” after replacing it two years ago with the line: “Proud to be a building society”.