- Last year the building society donated £100 to around 3.3 million customers
- Latest payment could be higher because earnings were boosted by higher interest rates
- Nationwide wants to take advantage of this to continue paying a ‘Fairer Share’ bonus
Nationwide is set to deliver a loyalty bonus worth at least £350m to millions of members.
Last year the building society donated £100 to around 3.3 million customers. But the latest payment could be even higher because the mutual’s profits have been boosted by higher interest rates.
Nationwide has said it wants to take advantage of this to continue paying a ‘Fairer Share’ bonus to eligible members.
The details, to be announced on Thursday, come a day after Virgin Money shareholders decide whether to accept a controversial £2.9bn takeover offer from Nationwide.
The mutual, which is owned by its 16 million customers, has been criticized for not offering them a vote on the deal (the biggest in UK banking since the 2008 financial crisis) and for not explaining in detail the benefits of the deal. acquisition.
Payout: Nationwide has said it wants to take advantage of this to continue paying a ‘Fairer Share’ bonus to eligible members.
It maintains that the purchase of Virgin Money will create a combined group with “improved financial strength”, ranking only behind Lloyds Banking Group in terms of savings and loans.
Opposition to the 220p per share deal has been growing, and not just from Nationwide members who claim they have been denied the chance to vote on a “technicality”.
As the Mail on Sunday revealed last week, Virgin Money’s biggest independent investor attacked the board for recommending Nationwide’s bid, which it claims is “likely to sell very little to shareholders”.
Allan Gray, an Australian fund management group that owns 10 percent of Virgin Money, said he was “disappointed” with the offer, although he did not say which way he would vote.
Australian investors hold the key to the outcome, owning just under half of the bank’s shares.
This is a legacy from when the former Clydesdale and Yorkshire Bank Group was owned by National Australia Bank.
Sir Richard Branson’s Virgin Group has already pledged its 15 per cent stake in support of the deal.
The tycoon will receive more than £600 million for his shares and license fees.
Virgin Money needs three-quarters of voting shareholders to approve the deal, which experts say is a pretty high bar.
Nationwide declined to comment.