Nationwide to Announce Loyalty Bonus Decision for 16 Million Members

Nationwide Building Society will announce on May 23 whether it will pay a loyalty bonus to its 16 million members, following a £340 million payout in 2023. The building society's profits rose to £2.2 billion in the year to April 2023, increasing the likelihood of another payout.

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Nitish Verma
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Nationwide to Announce Loyalty Bonus Decision for 16 Million Members

Nationwide to Announce Loyalty Bonus Decision for 16 Million Members

Nationwide Building Society is set to announce on May 23 whether it will pay a loyalty bonus to its 16 million members, following a £340 million payout of £100 each to 3.4 million members in 2023. The building society's "Fairer Share" offer last year rewarded eligible members who had a current account and at least £100 in a savings account or at least £100 outstanding on a mortgage as of March 31, 2023.

Why this matters: This announcement has significant implications for millions of Nationwide members, potentially providing them with a welcome financial boost in the coming months. Moreover, the decision may set a precedent for other financial institutions to follow, influencing the broader banking industry's approach to customer loyalty and rewards.

Nationwide, which is owned by its customer members, saw its annual pre-tax profits rise to £2.2 billion in the year to April 2023, up from £1.6 billion the previous year. The building society's total underlying revenue also increased to £4.7 billion from £3.9 billion a year earlier.

James Blower, founder of Savings Guru, expects Nationwide to announce another loyalty bonus based on the favorable trading conditions for banks in 2023. "Nationwide pays the Fairer Share loyalty bonus based on their profits... I'd be amazed if they didn't make a good profit and are unable to make a payout this year," Blower said. He advises members who qualified last year to look out for the May 23 announcement, as they may receive more good news.

A Nationwide spokesperson expressed optimism about the potential for a loyalty bonus payout in 2024, stating, "We're hoping that we can make a payment in 2024. It depends on how we perform financially... Look out for an announcement on 23 May." The spokesperson added that Nationwide will be able to confirm the payment and eligibility criteria once the financial year ends in April.

The announcement of Nationwide's loyalty bonus decision comes just one day after Virgin Money shareholders are set to vote on the proposed deal with Nationwide on May 22. The building society has faced scrutiny for not giving its 16 million members a say on the takeover of Virgin Money, while Virgin Money shareholders will have the opportunity to vote on the deal.

With strong financial performance in the last year and expert predictions favoring another loyalty bonus payout, Nationwide members eagerly await the May 23 announcement. The building society's decision will impact millions of its customers, potentially providing them with a welcome financial boost in the coming months.

Key Takeaways

  • Nationwide to announce loyalty bonus decision on May 23.
  • Eligible members may receive £100 payout, like in 2023.
  • Nationwide's pre-tax profits rose to £2.2 billion in 2023.
  • Experts predict another loyalty bonus payout due to strong finances.
  • Decision may set a precedent for other financial institutions.