Why is N&P proposing to merge with the Yorkshire Building Society?
For many years N&P has been committed to putting its customers at the heart of everything the Society does, and we know from all the feedback that our way of doing this is warmly and loyally welcomed. We believe that the Society has developed some key strengths in its core mortgage, savings and current account products, the high quality of service it provides to customers and its skilled, well trained, motivated and professional staff.
The Board concluded some time ago that to uphold this proposition for the longer term requires continued levels of investment in back office, branches, product pricing and range as well as to support training and development opportunities for our staff to help them keep delivering the service expected.
The necessary resources for this investment can only readily come from the economies of scale, organisational depth and financial strength associated with size. We also strongly believe that the values and culture associated with the mutual business model are the right ones for our market.
As previously announced, the Board has been holding exclusive discussions with Yorkshire Building Society after reviewing N&P's activities, operations, financial position and corporate structure, and has now concluded that a merger with the Yorkshire is strongly in the best interests of N&P's members.
The proposed merger will bring together two building societies with shared values and a strong commitment to delivering long-term member value and exceptional customer service.
The enlarged Society will offer our members enhanced security by combining the Yorkshire's financial strength and merger experience with N&P's strong presence and membership in its east of England region. There is a good geographical fit of branch networks, with virtually no overlap, providing a larger and better balanced national presence in the savings and mortgage markets.
N&P's capabilities and expertise in different product areas, such as current accounts, will provide opportunities for Yorkshire to develop its own new products and services for members.
Without the merger with the Yorkshire, N&P would face continuing challenges in making the necessary continued investment to meet members' expectations. The investment costs involved would have to be covered by income earned from a smaller customer base than for a larger society, because of higher long-term funding and liquidity costs, and a competitive bias to size.
Mergers between building societies offer clear benefits to members and continue to play a major role in the strengthening of a resilient mutual sector.
What will the enlarged Society be called?
The enlarged Society will be known as Yorkshire Building Society. The Norwich & Peterborough (N&P) name will be retained as a separate and distinct brand within the Yorkshire, in a similar way to the Barnsley and Chelsea brands, which merged with the Yorkshire over the past couple of years.
What does the proposed merger mean for N&P's members?
N&P members will continue to benefit from being part of an independent mutual, with savers and borrowers benefiting from the security and stability provided by the Yorkshire, one of the UK's strongest financial institutions.
The enlarged Society will continue to be owned and run in the interest of its current and future members, offering good long-term value products and excellent customer service.
It is intended that a high street presence will be retained in all communities where either the Yorkshire or N&P currently have a branch or agency. As part of that commitment, all N&P's existing branches will be maintained for a minimum of two years. And the existing strong community partnerships and activities of each society will continue.
How will the proposed merger affect eligibility under the Financial Services Compensation Scheme (FSCS)?
Members who are savers with both the Yorkshire (or any brand of the Yorkshire, including Chelsea and Barnsley Building Societies) and N&P at the time the proposed merger completes, will then be limited to one FSCS depositor protection limit of £85,000 per individual - and £170,000 for joint accounts.
Consideration will be given to allow savers who exceed this amount as a result of the proposed merger, to reduce their combined balance without notice or any loss of interest on the amount withdrawn.
For eligibility under the FSCS rules, please refer to the FSCS website at www.fscs.org.uk
When will the proposed merger take place?
It is anticipated that the proposed merger will take effect on 1 November 2011. This is subject to a number of conditions, including, very importantly, eligible savings and borrowing members of N&P voting in favour of the merger resolutions at a Special General Meeting (SGM) of members to be held on 22 August and the proposed merger subsequently being confirmed by the Financial Services Authority (FSA).
What happens next?
No action is required by N&P members yet. In July, members eligible to vote will receive a voting pack which will contain a complete guide to the proposed merger and should answer any questions you may have. The pack will also contain a personalised voting form which members can complete and return by post or online.
You will be able to vote on the proposal at a SGM to be held on 22 August 2011, if you meet the voting requirements.
The merger is important to the future of N&P and its members. It requires the approval of our members and we urge you to vote in favour of the merger.
Look out for the voting pack and make sure your vote counts at the SGM in August.
More Information:
Click here to read full press release
Contact us
Call our member helpline on 0845 128 2822
Email us at info@nandp.co.uk