Nationwide Building Society is set to distribute £100 to over four million members following what it terms as an “outstanding twelve months” of performance, highlighted by its Virgin Money acquisition and an increase in mortgage lending.
The £410 million “Fairer Share” payout, marking the third annual bonus for eligible members, emerged from Nationwide’s annual results that indicated a profit rise to £2.3 billion, up from the previous year’s £1.8 billion. This member-owned organisation emphasised its dedication to rewarding customer loyalty by returning £1.8 billion of a £2.8 billion total return to members through competitive savings and mortgage rates, alongside £1 billion in direct cash bonuses.
Nationwide’s remarkable successes were aided by its £2.9 billion Virgin Money acquisition, finalised last October, and a surge in mortgage lending. Net mortgage lending soared to £15.9 billion from £2.6 billion the preceding year, driven by a rush of homebuyers before a stamp duty discount ended in March. March set a record as Nationwide’s busiest month for mortgage completions, surpassing 30,000 property purchases.
Debbie Crosbie, the chief executive, asserted that their robust performance equips Nationwide with the financial capability to reward members and foster strategic growth: “This is the benefit of mutuality — we can reinvest our profits for the benefit of our members.” Crosbie’s decisive acquisition move propelled Nationwide past NatWest to become the UK’s second-largest mortgage lender, trailing only Lloyds Banking Group. This acquisition reunited Crosbie with a business where she devoted over two decades earlier in her career.
In gratitude for member support regarding this takeover, Nationwide also allocated a £50 one-off payment to 12 million members the previous month, totalling £615 million. This was on top of the £385 million Fairer Share bonus in 2023 and £344 million in 2022. Although Virgin Money remains a separate brand for now, Crosbie indicated potential future integration to harvest cost savings and synergies, especially surrounding funding, IT, and third-party expenses, noting no significant staff changes in the immediate future.
Despite the conclusion of the March stamp duty deadline, Nationwide reports steady mortgage demand, as finance chief Muir Mathieson noted, defying anticipated declines. However, Crosbie cautioned that proposed government modifications to the Isa system — especially any limits on cash Isas — could impact mortgage affordability, particularly for smaller institutions. The Treasury is contemplating slicing the £20,000 annual allowance for cash Isas to pivot savers toward equity-based Isas, aiming to revitalise the London Stock Exchange.
Crosbie warned that such a policy could challenge building societies predominantly relying on cash savings for mortgage financing. She stressed that equities aren’t suitable for every saver: “Our research reveals a limited appetite for equity investments among most savers, rendering stocks and shares potentially unsuitable for retirees or first-time homebuyers.” Amid these speculations, Nationwide, which only offers cash Isas, observed a surge in new deposits recently.
Read more: [Nationwide rewards members with £100 payout after record profits and Virgin Money deal](https://bmmagazine.co.uk/news/nationwide-members-payout-virgin-money-profits-2025/)
