Nationwide gains £2.3bn after Virgin Money takeover in boost for customers 

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Nationwide has gained £2.3 billion 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 £385 million in Fairer Share payments, which sees rewards paid out to eligible members.

Ms Crosbie said: “Over the last 18 months, our mutual model has enabled us to provide over £3.5 billion in member value, including £729 million 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.