Nationwide Building Society: major UK bank says £2.3bn gain from takeover deal will benefit account customers

• Nationwide Building Society has reported a £2.3 billion gain since acquiring Virgin Money
• The merger, completed in October, is the UK’s largest banking deal since the financial crisis
• Nationwide plans to invest in Virgin Money, creating 500 jobs in call centres and IT
• Future profits from Virgin Money will benefit Nationwide customers, not external shareholders

A major UK bank and building society has said it has gained £2.3 billion since acquiring Virgin Money, cash that will be used for the “benefit of customers”.

Nationwide Building Society said that the value of Virgin Money, which it purchased in October, is now well above the £2.8 billion takeover price. The merger is the largest banking deal in the UK since the financial crisis.

Nationwide also revealed plans to create around 500 jobs, primarily in call centres and IT, as part of its investment to enhance Virgin Money’s customer service.

Nationwide’s chief executive Debbie Crosbie stressed that “future profits generated by Virgin Money can now be used for the benefit of customers, rather than being paid to external shareholders”.

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Will Nationwide customers receive payments or money?

Despite its £2.3 billion gain since the acquisition of Virgin Money, Nationwide also reported a drop in profits as it dished out cash to members.

The building society reported a sharp drop in profits for the latest half-year period, saying this reflected its Fairer Share Payment of £100 to 3.85 million to eligible members in June.

To be eligible for the Fairer Share Payment, members must meet specific criteria set by Nationwide. Generally, this includes holding a qualifying account with the building society for a certain period.

For example, members must have been with Nationwide for a set number of months or years and had an active account at the time the payment was made.

Nationwide chief executive Debbie Crosbie has emphasised that the future profits from Virgin Money will go towards customer-focused initiatives, not external shareholders.

But this statement does not confirm that customers will receive a direct payout from the £2.3 billion gain itself.

What do you think about Nationwide's £2.3 billion gain and its plans for customers? Will the creation of jobs and the Fairer Share Payment benefit members in the long run? Share your thoughts in the comments section.