Bumper win for top female banker as Nationwide seals £2.9bn takeover of Virgin Money
The building society completed its £2.9bn takeover of Virgin Money in October, making it the UK’s second largest mortgage and savings provider
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Nationwide has gained £2.3bn following its acquisition of Virgin Money, according to the firm’s half-year results.
The building society completed its £2.9bn takeover of Virgin Money in October, making it the UK’s second-largest mortgage and savings provider.
The purchase brings together around 24.5 million customers, more than 25,000 staff and nearly 700 branches.
The two brands will continue to exist on UK high streets for between four and six years before Virgin Money is fully absorbed by Nationwide and customers are switched over.
Britain’s top female banker Debbie Crosbie, chief executive officer of Nationwide, said the profits generated by Virgin Money will now be used for customers, rather than be paid to shareholders.
She said that the gain her company made from buying the rival below its £4.4bn value provided the opportunity to invest in service and value.
The firm’s half-year results, published on Wednesday morning, showed Nationwide delivered record growth in mortgages and retail deposits and the highest-ever member value at the half-year stage.
This included returning £950m in rates and incentives, plus £385m in Fairer Share payments, which see rewards paid out to eligible members.
Ms Crosbie said: “Over the last 18 months, our mutual model has enabled us to provide over £3.5bn in member value, including £729m through the Nationwide Fairer Share Payment.”
The building society said it recorded profits of £959m, which was down on last year’s £1.3bn.
It said this was due to the bank’s fluctuating base interest rate throughout the year, and its decision to “give more value back” to its customers.
The firm’s mortgage balances increased to a record £210.8bn while net lending also peaked at £6.3bn.
Member deposit balances also increased by £8.3bn to £201.7bn.
The firm also posted its highest level of first-time buyer lending and recently extended its Helping Hand product, enabling mortgage borrowing of up to six times income.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments