London, 29 May 2025 – Nationwide Building Society has hailed an “outstanding” year after reporting a 30 per cent surge in pre-tax profits and completing its £2.9 billion takeover of Virgin Money. The mutual society’s results for the year to 31 March revealed profits of £2.3 billion, up from £1.8 billion the previous year, even after returning a record £2.8 billion in value to its members.
Under its popular Fairer Share scheme, Nationwide will next month distribute its third payout to eligible members—£100 each. Last year’s payment of £385 million benefited 3.85 million members, and was accompanied by a one-off £615 million “Big Nationwide Thank You” reward.
Group chief executive Debbie Crosbie described the performance as “outstanding”. She said: “We returned a record £2.8 billion in value to our members and recorded our highest-ever year for growth in mortgage lending and retail deposit balances.”
The society’s underlying pre-tax profit, which strips out one-off items and includes the cost of competitive interest rates to savers, was £1.9 billion—slightly down from £2 billion a year earlier. Nationwide said it had deliberately prioritised attractive savings rates for customers amid lingering inflationary pressures.
A key highlight was the smooth integration of Virgin Money, which was acquired last summer. In the six months following completion, Virgin Money’s mortgage lending returned to growth and customer-service scores improved, Ms Crosbie noted. Reports from the subsidiary showed record net lending of £15.5 billion—new lending less redemptions—and a 35 per cent rise in retail savings balances to £260.7 billion.
Virgin Money deposit rates averaged 30 per cent above market levels, reinforcing the group’s commitment to rewarding savers. “The Virgin Money performance was strong in the six months since our acquisition,” said Ms Crosbie. “We’re pleased with the initial results and the integration is progressing well.”
Despite running Nationwide and Virgin Money as separate brands for the time being, the society has ruled out short-term job cuts. “The current footprint that we have will remain the same,” Ms Crosbie assured staff and customers. She added that it was “too early to say” what long-term workforce adjustments might follow as the two businesses are brought closer together.
The takeover propels Nationwide to the position of the UK’s second-largest mortgages and savings provider by combined balances. It also broadens the mutual’s reach into commercial and digital banking markets where Virgin Money has a significant presence.
Nationwide’s results arrive as high street lenders face a complex outlook. While consumers benefit from higher savings rates, mortgage costs remain elevated as Bank of England base rate rises feed through into borrowing costs. The society forecasts modest UK GDP growth of around 1.4 per cent this year, acknowledging “global economic uncertainty” but noting that UK households and small businesses remain generally resilient.
Industry analysts welcomed Nationwide’s results and the strategic value of the Virgin Money deal. Emily Clarke, a banking analyst at Shoreline Research, commented: “Nationwide has delivered exceptional returns to members while reinforcing its competitive position. The Virgin Money acquisition offers substantial cross-selling opportunities and digital capabilities that should drive future growth.”
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However, some consumer groups have urged vigilance over the pace of integration. “Membership mutuals must ensure that the interests of existing members are protected when acquiring businesses with different cultures,” cautioned John Fielding, spokesman for the consumer advocate FairBanking Foundation. “It is reassuring that Nationwide is maintaining separate brands and committing to no immediate job losses.”
Nationwide said it continued to invest in its digital platforms, branch network and customer-support services. Over the past year it has rolled out a new mobile banking app, expanded its online mortgage adviser team and opened three additional branches in underserved areas. The society also plans to enhance its climate-related lending, having already set a target to reach net-zero emissions from its lending portfolio by 2050.
As Nationwide prepares to reward another tranche of members next month, the society’s leadership insists that mutuality—putting members’ interests first—remains its north star. “Our success flows directly from our members’ loyalty and trust,” Ms Crosbie concluded. “We will continue to focus on delivering value, competitive rates and exceptional service, as we build a stronger, more inclusive financial future for all.”
