Nationwide has revealed its plans for the future after delivering its highest ever value to members.

The Swindon-based building society released its preliminary results for the financial year ending April 2024, which included an extension of its promise to keep high street branches open until the start of 2028, and how it helped 64,000 first-time buyers get a home of their own.

The business delivered a total of £2,194m in value to its members, which included member financial benefit - that increased by £800m to £1,850m - and the distribution of the first Nationwide Fairer Share Payment to over 3.4m eligible members in June 2023, totalling £344m.

A second Fairer Share Payment is being rolled out to members in the near future.

Its underlying profit (£2,033m) and total underlying income (£4,664m) remained at a similar level to the previous year while the total costs increased to £2,422m, mortgage arrears levels started low but then began increasing as the year progressed, and high interest rates remain a key risk.

Chairman Kevin Parry said: “The society’s continued financial strength enabled us to deliver our highest ever member value and allowed the Board to declare a second Nationwide Fairer Share Payment for eligible members.

“The acquisition of Virgin Money will bring the benefits of mutual ownership to more people in the UK and will enable us to provide further value to customers and members through its products and services.”

The announcement of this acquisition sparked protests from some Nationwide members who wanted to have a say in whether the £2.9 billion takeover should go ahead.

Chief executive Debbie Crosbie explained that the merger is expected to completed during Q4 2024, subject to the satisfaction of the conditions of the court-approved Scheme of Arrangement document and the requirements of the Takeover Code.

After completion, and following the customary regulatory profit verification approval processes, execs expect the combined group to have a strong pro-forma capital position as the tangible net asset value of Virgin Money of £4.4 billion16 is £1.5 billion in excess of the acquisition price of £2.9 billion and, so a significant gain is expected to be recognised as a result of the acquisition.

The building society boss added: “We have made excellent progress in delivering our new strategy.

“We delivered our highest ever member value and our strong financial performance means we can extend the ways that members benefit from our success. In 2024, for a limited period, all our members can access the preferential interest rate on our Member Exclusive Bond.

“We provide our members and customers with great value products, choice in the way they bank with us, and simply brilliant service. We have been first for customer satisfaction among our peer group for 12 years running and have continued to grow our deposit and mortgage balances.

“In March 2024, we confirmed our offer to buy Virgin Money. I believe this deal offers an exciting opportunity to create a more diverse business that delivers even more value to our members and will strengthen Nationwide financially.

“We continue to make good progress on our plans and expect to complete the acquisition in Q4 2024, subject to regulatory approval.”

As for the future, though the economic outlook is uncertain, the credit quality of Nationwide’s lending portfolios is strong and its capital resources are described as robust.

As more households adjust their expenditure priorities in the higher interest rate environment, the society pledged to continue supporting those borrowers who face payment difficulties.