Nationwide offers £100 cash gift to members after £2bn profit bonanza

Nationwide offers £100 cash gift to members after £2bn profit bonanza

Britain’s top female banker Debbie Crosbie announced Nationwide’s financial results with a £100 gift to members of the building society.

The cash sum follows on from Ms Crosbie’s decision in March this year to buy rival lender Virgin Money for around £2.9 billion.

She said the deal offers an “exciting opportunity to create a more diverse business that delivers even more value to our members.”

Virgin Money’s asset value of £4.4bn is £1.5bn more than the acquisition price of £2.9bn, meaning Nationwide has sealed the deal for the firm at a considerable discount to its book value.

In another sop to her members Ms Crosbie is offering all 16 million account holders a 5.5 per cent bond.

The mutual financial institution is also offering £200 to existing members who do not use Nationwide for everyday banking if they switch with them and open a current account.

Announcing its results on Thursday, the building society said it recorded profits in the last financial year of £2bn, which was slightly down on last year’s figure of £2.3bn.

It said the reason for the slight dip in profits was due to its decision to prioritise better returns for members.

This included £1.8bn in better saver rates and £344 million through the 2023 Fairer Share Payment which delivered £100 into the accounts of eligible members last year.

The firm added that mortgage and deposit balances have grown since last year. Mortgage balances increased to £204.5bn in the latest set of results, compared to £201.7bn in 2023, and member desposit balances were boosted by £6.3bn.

The building society, which has the largest single-brand branch network in the UK, also decided to recently extend its commitment to keep branches open where they already have locations until at least the start of 2028.

Ms Crosbie said: “We delivered our highest ever member value and our strong financial performance means we can extend the ways that members benefit from our success.

“In 2024, for a limited period, all our members can access the preferential interest rate on our Member Exclusive Bond.

“Eligible members who have chosen us for their everyday banking will also receive a Nationwide Fairer Share Payment, and we are offering a member-only £200 incentive to encourage more members to switch their main current account to us.”