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| − | Nationwide has insisted its takeover of Virgin Money will make it financially more resilient after experts said the deal could initially weaken the mutual's balance sheet.<br><br>The building society agreed a £2.9billion deal last week to buy the challenger bank and create Britain's second biggest savings and [http://loanstoonline.com online payday loans no credit check] group. <br><br>The tie-up is Debbie Crosbie's boldest move since she became the mutual's boss in 2022.<br><br>She said the takeover 'strengthens Nationwide and means we can offer more value and broader services for our members'. <br><br><br><br><br>Tie-up: Analysis of Nationwide's balance sheet after swallowing Virgin Money shows it would be in a weaker position<br><br>Nationwide also says it would 'create a combined group with enhanced financial strength,' with access to new sources of funding.<br><br>But an analysis of Nationwide's balance sheet after swallowing Virgin Money shows it would be in a weaker position.<br><br>Nationwide says a key measure of financial strength, known as common equity tier one capital, would be around 20 per cent after the takeover. That's still high compared to other big banks but lower than the 27 per cent Nationwide reported last year.<br><br><br><br><br>RELATED ARTICLES<br><br>Previous<br><br>1<br><br>Next<br><br><br><br>Nationwide vows to keep all branches as it strikes deal to... Nationwide will not ask members to vote on Virgin Money deal Nationwide's great rush to buy Virgin Money risks incurring... Nationwide member vote could derail Virgin takeover: Just... <br><br><br><br>Share this article<br><br>Share<br><br><br><br>HOW THIS IS MONEY CAN HELP<br><br>How to choose the best (and cheapest) stocks and shares Isa and the right DIY investing account<br><br><br><br>Another important indicator, the leverage ratio, would also be weakened by Nationwide taking on Virgin Money. 'This is a strong bank buying a weaker bank on the assumption that better management will drive up returns,' banking expert Philip Augur said.<br><br>'Maybe it will but the protracted period of integration will stretch management,' he added. <br><br>Nationwide plans a softly-softly approach to bedding in Virgin Money. It will run both brands with separate banking licences 'in the medium term' but does not expect to make sweeping job cuts at Virgin Money in the first year after the deal completes.<br><br><br><br>Nationwide has also extended its promise to keep all its branches open by two years to 2028, including Virgin Money's 91 outlets.<br><br>Sir Richard Branson's Virgin Group will pocket more than £400million in the deal for its 14.5 per cent stake. <br><br>Virgin Money, which was bought by Clydesdale & Yorkshire Banking Group for £1.7billion in 2018, | + | Nationwide has insisted its takeover of Virgin Money will make it financially more resilient after experts said the deal could initially weaken the mutual's balance sheet.<br><br>The building society agreed a £2.9billion deal last week to buy the challenger bank and create Britain's second biggest savings and [http://loanstoonline.com online payday loans no credit check] group. <br><br>The tie-up is Debbie Crosbie's boldest move since she became the mutual's boss in 2022.<br><br>She said the takeover 'strengthens Nationwide and means we can offer more value and broader services for [http://loanstoonline.com guaranteed personal loans] our members'. <br><br><br><br><br>Tie-up: Analysis of Nationwide's balance sheet after swallowing Virgin Money shows it would be in a weaker position<br><br>Nationwide also says it would 'create a combined group with enhanced financial strength,' with access to new sources of funding.<br><br>But an analysis of Nationwide's balance sheet after swallowing Virgin Money shows it would be in a weaker position.<br><br>Nationwide says a key measure of financial strength, known as common equity tier one capital, would be around 20 per cent after the takeover. That's still high compared to other big banks but lower than the 27 per cent Nationwide reported last year.<br><br><br><br><br>RELATED ARTICLES<br><br>Previous<br><br>1<br><br>Next<br><br><br><br>Nationwide vows to keep all branches as it strikes deal to... Nationwide will not ask members to vote on Virgin Money deal Nationwide's great rush to buy Virgin Money risks incurring... Nationwide member vote could derail Virgin takeover: Just... <br><br><br><br>Share this article<br><br>Share<br><br><br><br>HOW THIS IS MONEY CAN HELP<br><br>How to choose the best (and cheapest) stocks and shares Isa and the right DIY investing account<br><br><br><br>Another important indicator, the leverage ratio, would also be weakened by Nationwide taking on Virgin Money. 'This is a strong bank buying a weaker bank on the assumption that better management will drive up returns,' banking expert Philip Augur said.<br><br>'Maybe it will but the protracted period of integration will stretch management,' he added. <br><br>Nationwide plans a softly-softly approach to bedding in Virgin Money. It will run both brands with separate banking licences 'in the medium term' but does not expect to make sweeping job cuts at Virgin Money in the first year after the deal completes.<br><br><br><br>Nationwide has also extended its promise to keep all its branches open by two years to 2028, including Virgin Money's 91 outlets.<br><br>Sir Richard Branson's Virgin Group will pocket more than £400million in the deal for its 14.5 per cent stake. <br><br>Virgin Money, which was bought by Clydesdale & Yorkshire Banking Group for £1.7billion in 2018, will pay a £250million exit fee to the Virgin Group to stop using its name in four years' time. <br><br>The bank will also pay the Virgin Group £15million a year while it continues to do so.<br><br>The lender faces calls from some of its members for a vote on the Virgin deal. But Nationwide says a vote - which would take time - could derail the deal under City takeover rules.<br><br>Fewer than half (49 per cent) of 156 members polled by YouGov felt positive about the deal, though only six per cent said they felt negative.<br><br><br><br><br>DIY INVESTING PLATFORMS<br><br><br>Easy investing<br><br><br><br>Stocks & shares Isa<br><br>£1.50 fund dealing<br><br>0.25% fee on fund holdings<br><br>Investment ideas<br><br><br><br>Free fund dealing<br><br>Free fund dealing<br><br>0.45% account fee capped for shares<br><br>Flat-fee investing<br><br><br><br>[http://loanstoonline.com online payday loans no credit check] fees<br><br>From £4.99 a month<br><br>Trade shares and funds for £3.99<br><br>Social investing<br><br><br><br>Social investing<br><br>Share investing<br><br>30+ million global community<br><br>Model portfolios<br><br><br><br>Investment account<br><br>Free fund dealing<br><br>Free financial coaching<br><br><br><br>Affiliate links: If you take out a product This is Money may earn a commission. 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Latest revision as of 22:48, 16 April 2024
Nationwide has insisted its takeover of Virgin Money will make it financially more resilient after experts said the deal could initially weaken the mutual's balance sheet.
The building society agreed a £2.9billion deal last week to buy the challenger bank and create Britain's second biggest savings and online payday loans no credit check group.
The tie-up is Debbie Crosbie's boldest move since she became the mutual's boss in 2022.
She said the takeover 'strengthens Nationwide and means we can offer more value and broader services for guaranteed personal loans our members'.
Tie-up: Analysis of Nationwide's balance sheet after swallowing Virgin Money shows it would be in a weaker position
Nationwide also says it would 'create a combined group with enhanced financial strength,' with access to new sources of funding.
But an analysis of Nationwide's balance sheet after swallowing Virgin Money shows it would be in a weaker position.
Nationwide says a key measure of financial strength, known as common equity tier one capital, would be around 20 per cent after the takeover. That's still high compared to other big banks but lower than the 27 per cent Nationwide reported last year.
RELATED ARTICLES
Previous
1
Next
Nationwide vows to keep all branches as it strikes deal to... Nationwide will not ask members to vote on Virgin Money deal Nationwide's great rush to buy Virgin Money risks incurring... Nationwide member vote could derail Virgin takeover: Just...
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Another important indicator, the leverage ratio, would also be weakened by Nationwide taking on Virgin Money. 'This is a strong bank buying a weaker bank on the assumption that better management will drive up returns,' banking expert Philip Augur said.
'Maybe it will but the protracted period of integration will stretch management,' he added.
Nationwide plans a softly-softly approach to bedding in Virgin Money. It will run both brands with separate banking licences 'in the medium term' but does not expect to make sweeping job cuts at Virgin Money in the first year after the deal completes.
Nationwide has also extended its promise to keep all its branches open by two years to 2028, including Virgin Money's 91 outlets.
Sir Richard Branson's Virgin Group will pocket more than £400million in the deal for its 14.5 per cent stake.
Virgin Money, which was bought by Clydesdale & Yorkshire Banking Group for £1.7billion in 2018, will pay a £250million exit fee to the Virgin Group to stop using its name in four years' time.
The bank will also pay the Virgin Group £15million a year while it continues to do so.
The lender faces calls from some of its members for a vote on the Virgin deal. But Nationwide says a vote - which would take time - could derail the deal under City takeover rules.
Fewer than half (49 per cent) of 156 members polled by YouGov felt positive about the deal, though only six per cent said they felt negative.
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Share investing
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Free fund dealing
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Affiliate links: If you take out a product This is Money may earn a commission. This does not affect our editorial independence.
> Compare the best investing platform for you
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