Nationwide Reports £2.3bn Gain from Virgin Money Acquisition

The deal strengthens Nationwide's position as the UK’s second-largest mortgage and savings provider despite a drop in half-year profits.

Nationwide Building Society acquired Virgin Money for £2.9bn, realizing a £2.3bn gain due to the gap between the purchase price and Virgin Money's valuation.
The acquisition, completed in October, marks the largest UK banking merger since the financial crisis and boosts Nationwide's total assets to over £370bn.
Nationwide’s half-year pre-tax profits fell 43% to £568m, attributed to lower interest rates, competitive savings rates, and member payouts such as the £385m Fairer Share Payment.
Virgin Money will operate as a subsidiary for 18 months before full integration, with potential job cuts and operational streamlining expected during the process.
The merger positions Nationwide as a major player in business banking and credit cards, while enabling profits from Virgin Money to benefit its customer-owned model rather than external shareholders.