Nationwide to take over Dunfirmline BS Monday, 30th March 2009

Britain's larger building society, Nationwide is to buy core elements of the Dunfermline Building Society.

It has taken over £2.4 million of retail deposits, representing the accounts of around 300,000 Dunfermline members, as well as Dunfermline's £1 million prime mortgage lending book.

Ntionwide, has also acquired Dunfermline's 34 branches and retail sites, and all related employees, plus Dunfermline's head office at Dunfermline.

It will continue to trade as Dunfermline Building Society and will complement the other regional brands operating in Nationwide's group - Cheshire Building Society and Derbyshire Building Society.

Graham Beale, chief executive of Nationwide, said: "This is good news for the members of Dunfermline who are now joining the world's largest building society. As members of a solid, stable and dependable organisation, members of Dunfermline can be assured that their savings are safe. Nationwide has a strong association with Scotland and has been providing service to customers in this key market for many years. This transaction will enhance Nationwide's ability to operate nationally and locally, whilst recognising the goodwill attached to a historic and important Scottish brand.

"Nationwide is in a unique position by virtue of its size and financial strength, to provide support to Dunfermline, and we regard it as both responsible and commercially beneficial to undertake this transaction. This transaction excludes high risk assets: commercial loans and some residential loans (including the acquired and equity release portfolios) were not transferred, and the transaction will enhance the overall value to Nationwide's membership over the medium term."

And the Dunfermline brand will remain and Dunfermline's customers will continue to use their existing channels - branches, telephone and post - for transactions, as usual.

With the combined business of Nationwide and Dunfermline there will be around 900 branches with a good geographical spread across the UK. In addition, it is also expected that upon completion of the transfer, Nationwide's market share of retail deposits will increase to around 11% and the combined business will have a member base of 15 million.