Nationwide Building Society has snapped up the head office, branches, savings accounts and the majority of the residential mortgage book of collapsed Dunfermline, Scotland’s largest building society. 

Nationwide Building Society has snapped up the head office, branches, savings accounts and the majority of the residential mortgage book of collapsed Dunfermline, Scotland’s largest building society.

Nationwide, with assets in excess of £200 billion, said the deal would boost its retail customer base and franchise, bringing savings worth £2.3 billion and around 300,000 new customers to the group.

The deal also swells branch numbers to 900 and gives Nationwide, the UK’s largest building society, a market share of retail deposits of some 11 per cent and 15 million members.

The acquisition, of which the financial terms have not been disclosed, excludes commercial loans and some residential loans that are perceived to be high-risk assets and have subsequently been placed into administration.

Dunfermline’s social housing portfolio will be transferred temporarily to DBS Bridge Bank, which is owned and controlled by the Bank of England, which will manage these assets until they are sold.

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. Nationwide has a strong association with Scotland and has been providing services to customers in this key market for many years.

“This transaction will enhance Nationwide’s ability to operate nationally and locally, while recognising the goodwill attached to a historic and important Scottish brand,” he added.

The company said the acquisition would complement its regional brands, Cheshire Building Society and Derbyshire Building Society. The Scottish mutual will continue to trade as Dunfermline Building Society.