The UK’s largest building society has reaffirmed its commitment to high street access and customer-focused banking following its acquisition of Virgin Money. Nationwide says profits from the merger are already being used to improve offerings across its wider group.
Nationwide Building Society, which serves over 16 million members across the UK, has provided a fresh update on its operations nearly 18 months after finalizing its acquisition of Virgin Money. The £2.3 billion deal, completed in October 2024, marked a significant development for the mutual sector and has drawn attention from Parliament and consumer groups alike.
During a recent session of the Treasury Committee, Sarah Harrison, chief executive of the Building Societies Association, said that recent mergers within the industry have been “very positive,” highlighting Nationwide as a key example. The remarks have renewed focus on how the merger has shaped services for customers, particularly around product offerings, branch access and financial returns for members.
Broader Services and Strengthened Financial Position
Nationwide has reported notable gains from its expanded scope, including a wider selection of products and new business banking services. According to a spokesperson from the building society, the inclusion of Virgin Money’s profits within the group has helped increase its overall financial strength and stability.
The spokesperson explained that these gains have already translated into benefits for members: “Profits can be reinvested in better products and services, meaning we can deliver even greater value back to our customers, through better rates than the market average.” They added that Nationwide recorded a £2.3 billion gain at the time of the acquisition’s completion, which is now being used to cover integration costs and fund future investment.
The merger also enabled Nationwide to become the first large-scale mutual to offer business banking services. The institution has indicated that this offering will expand further in the coming years, though no specific changes or additional details have been provided at this time. According to Nationwide, the development aligns with its broader goal of extending the benefits of the mutual model to businesses across the UK.
Branches to Remain Open Through 2030
In a move that contrasts with widespread high street bank closures, Nationwide has confirmed that all 605 of its branches (alongside the 95 branches inherited from Virgin Money) will remain open until at least 2030. The announcement was framed as an extension of its existing Branch Promise, which aims to maintain in-person services for communities across the country.
The building society noted that in 133 locations, it remains the only banking presence on the high street. A spokesperson stated, “We recently extended our Branch Promise to 2030, which includes all Nationwide and Virgin Money branches as we continue to provide choice in how our customers bank with us.”
This announcement comes amid ongoing concern about the erosion of face-to-face banking options in many towns and cities. By maintaining a physical presence, Nationwide appears to be positioning itself as an outlier in an industry increasingly moving toward digital-only services.
Members have also benefited from three rounds of £100 payments over the last three years through the Fairer Share Payment scheme, which sees the mutual distribute part of its profits. Asked whether a further payment is expected in 2026, the society said the decision will be made by its board after the end of the financial year and will be announced in May, according to a Nationwide spokesperson.
