Nationwide Announces Profit-Sharing Bonus for Members
Nationwide, the UK’s largest building society, is set to announce a £100 profit-sharing bonus for each of its more than four million eligible members when it releases its annual results on Thursday. This will mark the fourth consecutive year that the mutual has offered this payment under its Fairer Share scheme.
However, customers of Virgin Money, who recently joined Nationwide following a £2.9 billion acquisition, will not be eligible for this year’s payout. The reason? They missed the March cut-off date. Almost half of Virgin Money’s 6.3 million customers qualify as Nationwide members due to their personal current accounts, savings, and mortgages, but they are excluded from this year’s payment.
Like other financial institutions, Nationwide has benefited from prolonged higher interest rates. This has allowed the mutual to generate more income from the difference between what it charges borrowers and pays depositors. As a result, profits have increased, which could lead to even larger payouts in the future.
Last year, members had to meet specific criteria to be eligible for the bonus. They needed a qualifying current account open on March 31, 2025, along with either at least £100 in total savings or a minimum of £100 owed on a mortgage on the same date. These requirements may change this year.
James Sherwin-Smith, who is campaigning to become Nationwide’s first member-elected director in over two decades, has raised questions about the fairness of the payout distribution. He asked, “Is there a better use or more equitable distribution of members’ capital?” His concerns highlight the ongoing debate about how profits should be shared among members.
Nationwide, led by chief executive Debbie Crosbie, has confirmed that it aims to make the Fairer Share payment again this year, subject to financial performance and board approval. The building society now operates Britain’s largest single-brand banking network, with 605 branches. It has also pledged to keep all of its branches and Virgin Money’s 91 High Street outlets open until at least 2030.
In addition to maintaining its physical presence, Nationwide is paying tycoon Sir Richard Branson £250 million for the use of the Virgin Money name. However, the cost of fully integrating the bank remains undisclosed.
Government Investigates Bank Branch Closures
The UK government has announced an investigation into the closure of high street bank branches. This move comes as part of a broader effort to understand the impact of these closures on customers who rely on in-person banking services.
The Treasury has commissioned an independent review, titled the Access to Banking Review, led by Richard Lloyd. A former director of the consumer rights charity Which? and a board member of the Financial Conduct Authority, Lloyd will submit his findings and recommendations by October 2026.
According to figures from Which?, two-thirds of bank and building society branches have closed over the past decade. More closures have occurred since the start of 2024, as banks continue to shift towards online services to reduce costs.
Despite this trend, Nationwide has committed to keeping all 696 of its branches, including those of Virgin Money, open until at least 2030. This decision highlights the mutual’s dedication to maintaining a strong physical presence in the UK banking sector.
