Yorkshire and N&P building societies agree to merge

Published 20th Apr 2011

Yorkshire Building Society (YBS) and Norwich & Peterborough Building Society (N&P) have agreed the terms of a proposed merger, which will create a group with assets of around 34 billion pounds.

YBS is Britain's second largest building society with assets exceeding 30 billion pounds, while N&P is the UK's ninth largest society with assets of 3.7 billion pounds.

"We will build on N&P's strong brand and the value it has delivered to its members, while gaining the opportunity to consider developing our own products in areas where N&P has complementary capabilities and expertise, such as the current account market," YBS Chief Executive Iain Cornish said in a statement on Wednesday.

The combined society, which will be known as Yorkshire Building Society, will be focussed on the traditional building society business of residential mortgages and savings and will be principally retail funded, the two societies said in a joint statement.

The proposed merger, which is subject to final agreement by the boards of both groups and on certain conditions being met, will create an enlarged society with 3 million members and 224 branches.

The N&P name will be retained as a separate brand within the combined group whose head office will be in YBS's existing headquarters in Bradford, northern England, they said.

YBS and N&P said a high street presence would be retained in all communities where there is currently a YBS or N&P branch and that all N&P branches would be retained for a minimum of two years.

Source: ' Reuters '

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