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N&P members approve Yorkshire merger

Norwich and Peterborough Building Society’s members have voted in favour of the merger between N&P and Yorkshire Building Society.

Of those who voted, 90 per cent of eligible savers and 87 per cent of eligible borrowers voted in favour of the resolutions to merge with Yorkshire.

The savers’ resolution required at least a 75 per cent majority and the borrowers’ resolution required a simple majority in favour.

Merger talks between the two parties began in March. The combined society will have more than three million members and 224 branches.

N&P chairman Gordon Horsfield says: “I should like to thank those members who have taken the time to study the board’s proposals and voted.  Through their votes they have clearly expressed their support for a merger with the Yorkshire. They too have recognised the short and long term benefits of this merger.

“The financial services market has changed fundamentally since the credit crunch began. If the needs of customers for a broad range of financial services are to be met, so as to provide a real mutual alternative to the banks, scale is more important to secure cost efficient operation and access to funding markets. The challenge is to be able to deliver the benefits of scale whilst retaining the personal touch. 

“In selecting the Yorkshire as a merger partner the Board is confident that both societies share the same values. Furthermore, the enlarged Society will have capital ratios which are amongst the strongest of any UK lender, bank or building society and thus a secure basis upon which to go forward.”

The merger remains subject to confirmation by the FSA, which is expected on November 1.

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  1. As a long serving member of the Norwich and Peterborough I can tell your readers that the comment about retaining the “personal touch” rings rather hollow, Gone are the days when they were a friendly rather cuddly local outfit. Customers have become increasingly unimportant. I am no longer able to get a sensible answer to my queries. The key one being how they justify charging a fee for using an authorised overdraft, when they also charge interest. When i complain they are quick to suggest I can take my business elsewhere. Well guess what – that is precisely what I intent to do!

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