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N&P warns of branch closures if Yorkshire merger collapses

Norwich & Peterborough Building Society says it could close some of its branches and withdraw certain products and services if members vote against the proposed merger with Yorkshire Building Society.

Merger talks between the two parties began in March. The combined society would have more than three million members and 224 branches. Members have until August 17 to return their voting forms.

The N&P board “strongly recommends” the proposed merger, which it believes will safeguard the future of the society.

N&P chairman Gordon Horsfield says: “The board has undertaken a detailed strategic review of the options for the future of N&P and concluded unanimously that a merger with the Yorkshire is firmly in the best interests of N&P’s members.

“In the absence of a merger, further significant cost cutting would be required to generate profitability to reinvest in the business. Some products and services would have to be discontinued and more branches would have to be closed.”


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There are 4 comments at the moment, we would love to hear your opinion too.

  1. if the company needs to close branches to get in profit then so be it. Belienve me when and if the merger goes ahead although there is a two year agreement on branches they will be closed The directors of this company have created a mess with nonsence sales targets and got it badly wrong fire the management and close some branches and get it back in profit

  2. It may be difficult for the N&P board to run an independent business but will it stay indepdent? Rember what happened to the Kent Reliance Building Society earlier this year, half the reserves given to a Hedge Fund. I’m voting for the Merger to see whats left trade mutually.

  3. More spin here than Alastair Campbell is capable of. These are the facts:
    Its not a merger – it’s a TAKEOVER. N&P, whose roots go back to 1852 will disappear in all but name only – your local independent building society will be swallowed up – owned and controlled from the Yorhshire’s HQ in Bradford – is that a good thing?

    The truth is that the N&P masters messed things up by venturing into areas building societies should not go – financial advice – and the Keydata debacle blew a hugh hole in their finances which has made them ripe for a takeover – providing some nice pickings for the Yorkshire BS.

    Most of the Board who got N&P into this mess have long jumped ship (Bullock, Hounsell, Jervis) so Anne Gunther has been parachuted in with one mission in mind – to push this takeover through. As a member i have just received a hugh 35 page document urging me to vote in favour of the “merger” because it is best thing for N&P. Best for who? Go to page 27 you will see that Ms Gunther will be paid £82,000 once the merger is complete – that’s 2 month’s salary – equivalent to nearly £500,000 per year – nice work if you can get it, !! There will be staff at N&P who have given the whole of their working lives to N&P who will be kicked out the door once this merger is passed and they will receive a tiny fraction of what Ms Gunther will be paid during her short spell at N&P. Guess we are not “all in it together”
    It gets better for some – Mr Pritchard, the Finance & Risk Director who had the Keydata scandal occur on his watch will walk away with a whopping £333,658 – talk about rewarding failure!
    I urge all members to quiz the N&P board on these payments

    So it now comes to light that the N&P Board were “striving” for a merger since 2009. This is contrary to the messages put out to the media. So much for their mission statement about being “disarmingly honest” – joke!

    Assuming the Yorkshire keep to their word and keep all the branches open for 2 years – then what? They will then be subject to “review” – sure you can work that one out.

    Once thing is for certain – there will be hugh job losses at Lynch Wood shortly after the merger has been completed and this will impact on customer service – so don’t be fooled in to thinking everything will stay the same down at your local branch.

    I urge all members to think carefully before they put a tick in the “Yes” box agreeing to this shotgun wedding.

  4. Bill Mackintosh 18th July 2011 at 11:48 am

    Well, I see little advantage in this merger. I could see the point of this if the merger does not include recriprocity for customers visiting the high street premises. In 2 years there can be major changes which no-one can predict. So a yes vote is ‘into unknown waters in 2 years’. I agree something needs to be done, but I think one should have a look at the way the Saffron BS has developed, and see if that model would be better.

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