Overview

• 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.