Mutually-owned Nationwide Building Society revealed on Wednesday it made a £2.3 billion gain from its £2.8 billion takeover of listed Virgin Money earlier this year.

In its results for the six months to September 30, 2024, Nationwide said its mortgage balances rose to £210.8 billion with record half year net lending of £6.3 billion.

Member deposit balances increased by £8.3 billion to £201.7 billion. Deposit market share rose to 9.6%.

Underlying profit before tax decreased to £959 million from £1.262 billion and statutory profit before tax fell to £568 million from £989 million “primarily due to the profile of interest rates over the period and our choice to offer competitive rates.”

Nationwide Building Society CEO Debbie Crosbie is a former top executive at Clydesdale and Yorkshire Banks, which became part of Virgin Money. She is also a former TSB Bank CEO.

 Crosbie said: “Nationwide delivered record first half growth in both mortgages and deposits, and record member value.

“Over the past 18 months, our mutual model has enabled us to provide over £3.5 billion in member value, including £729 million through the Nationwide Fairer Share Payment.

“Following our acquisition of Virgin Money on 1 October, we’ve recorded a gain of £2.3bn, as the value of net assets acquired is well above the price we paid.

“This gain provides significant headroom to cover our investment in integration, as well as in service and value. 

“Future profits generated by Virgin Money can now be used for the benefit of customers, rather than being paid to external shareholders.”