Nationwide Building Society
|Type||Building Society (Mutual)|
|Industry||Banking and Financial Services|
|Founded||1846 (earliest components)|
|Headquarters||Swindon, Wiltshire, England|
|Key people||Geoffrey Howe, Chairman
Graham Beale, Chief Executive
|Products||Retail banking, Savings
Mortgage loans, Investments, Insurance, Current accounts, Loans, Car insurance, Home insurance, Travel insurance, Credit cards
|Divisions||Cheshire Building Society
Derbyshire Building Society
Dunfermline Building Society
Nationwide Building Society is a British mutual financial institution and the largest building society in the UK. It has its headquarters in Swindon, with an office in Threadneedle Street, London, and with administration centres based in Bournemouth, Northampton and Dunfermline.
Made up of over a hundred mergers — most notably the merger between Nationwide and the Anglia Building Society in 1987 and between Nationwide and Portman in 2007 — they are now a top-three provider of household savings and mortgages in the UK.
The Society's origins lie in the Provident Union Building Society established in Ramsbury, Wiltshire (1846), the Northampton Town & County Freehold Land Society (1848) and the Southern Co-operative Permanent Building Society, London (1884).
The Co-operative Permanent changed its name to Nationwide Building Society in 1970, reflecting an organisation that had coverage throughout the country. The new name was put to a member vote, with members voting 135,675 to 15,585 in favour.
In 1987, the Northampton-based Anglia Building Society merged with Nationwide. The new society was known as Nationwide Anglia Building Society at first, but the Anglia name was dropped in 1992.
Nationwide launched the UK's first internet banking service on 27 May 1997.
In 1999, Nationwide, together with various UK tabloid newspapers and media, launched a campaign against controversial cash machine fees. The campaign reached a peak when Barclays Bank announced a plan to charge all customers of rival banks and financial providers, including those of Nationwide, £1 for every cash machine withdrawal made from a Barclays-owned cash machine. This prompted Nationwide to warn Barclays that it would take legal action against the bank if it did not back down. Nationwide claimed Barclays had broken the rules of the LINK network of cash machines, which the bank had joined earlier in the year. The following year, withdrawals from most cash machines owned by UK banks were made free for customers of all banks and building societies throughout the UK.
Nationwide completed a merger with the former Portman Building Society on 28 August 2007, creating a mutual body with assets of over £160 billion and around 13 million members.
In the financial crisis of 2007–2010, the Nationwide acted to safeguard the mutual sector, acquiring the ailing Cheshire and Derbyshire building societies in September 2008, followed by the Dunfermline Building Society on 30 March 2009. While the three building societies currently operate as divisions of the Nationwide under their own brands, it was announced in 2012 that they would start to be integrated into the Nationwide brand. Nationwide say that the integration will be phased and will be completed by mid 2015. The Dunfermline Building Society will be the first of the three regional building society brands to be integrated, with the rebranding to take place over one weekend, expected in Summer 2014.
Nationwide is committed to staying mutual and is keen to emphasise that it has members rather than shareholders. However, it has had challenges against its mutual status in the past.
Nationwide was by far the largest British building society that did not convert to a bank in the wave of demutualisations that occurred from the late 1980s to the late 1990s.
In 1998, society members seeking a windfall, branded as carpetbaggers by the UK media, meant Nationwide members had to vote on whether to demutualise the society and float on the London Stock Exchange. The attempt failed, despite media reports of possible pay-outs to members of around £1,000 to £1,500 each, as Nationwide members voted by a narrow margin of 33,700 against converting the building society into a bank.
Products and services
Nationwide Building Society provides financial services both directly, and through around 700 branches. Nationwide is a major provider of both mortgage loans and savings in the UK, as well as personal banking such as loans, credit cards, bank accounts and insurance products. Nationwide.co.uk is the main website.
In Nationwide’s most recent interim financial results (for the half year ended 30 September 2013), they reported a 155% increase in underlying profit to £332 million and a 25% increase in total underlying income to £1.39 billion. Their statutory profit was £270 million.
Gross mortgage lending increased by 37% to £14.0 billion and net lending rose 75% to £5.6 billion. Over 30,400 first time buyers were helped onto the housing ladder.
Nationwide also owns several subsidiary companies, including:
- Nationwide International Limited – offshore deposit taker
- Nationwide Syndications Limited – syndicated lending
- The Mortgage Works (UK) plc – specialised mortgage lender
- UCB Home Loans Corporation Limited – specialised mortgage lender
- Derbyshire Home Loans Limited – specialised mortgage lender
- E-MEX Home Funding Limited – specialised mortgage lender
- Geoffrey Howe - Chairman
- Graham Beale - Chief Executive
- Julia Dunn - Chief Compliance Officer
- Iain Laing - Chief Risk Officer
- Tony Prestedge - Chief Operating Officer
- Mark Rennison - Group Finance Director
- Chris Rhodes – Executive Director, Group Retail
- Alison Robb - Group Director (People, Customer, Communications & Commercial)
- Graeme Hughes - Group Director (Distribution)
- "Nationwide rescues small lenders". BBC News. 8 September 2008. Retrieved 3 March 2013.
- "Nationwide takes over Dunfermline". BBC News. 30 March 2009. Retrieved 3 March 2013.
- "Dunfermline to be merged with Nationwide". BBC News. 24 October 2013. Retrieved 24 October 2013.
- "World’s largest Building Society opens for business in Ireland". Nationwide Building Society. 24 March 2009. Retrieved 3 March 2013.
- "Business: The Company File Conversion rejected". BBC News. 23 July 1998. Retrieved 3 March 2013.
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