Nationwide Big Thank You

epm-84 · 1 April at 10:39AM

MACKEM99 said:

Perhaps its to do with their systems being down since Sunday (thats what I was told on the phone a few minutes ago) when I rang to complain about money I had transferred out well over 2 hours ago not appeared in receiving account yet. They cannot even log my complaint. Should I make a complaint about not being able to make a complaint?

Is this posted in the right thread? I can't see anything on the Nationwide website about a payment issue and a social media post in the last hour said all their systems are operating as normal.

Nasqueron · 1 April at 10:42AM

wmb194 said:

Nasqueron said:

grumpy_codger said:

Nasqueron said:

epm-84 said:

grumpy_codger said:

epm-84 said:

I think in fairness to Nationwide - they have decided on a £50 member bonus. That's more than Coventry members are getting from the acquisition of Co-op Bank (unless they make some announcement soon).

How can a company make real money soon after acquisition of some other company? I think a short-term effect is quite opposite.

I'm not an expert on limited companies, but I think when they agree a merger it's not uncommon for there to be a shareholder pay out, even if the shareholders haven't reduced their shares. As building society members are like shareholders, should it be any different?

I suppose the strange thing is the fixed £50, regardless of the amount you have invested.

I posted about this before ither on this thread or another - they paid a fixed sum but got more than expected in value hence the surplus which they used as a payout

'Value' is too vague in this respect especially as as they aren't listed on the stock market. And after spending a lot of cash you hardly can use surplus 'value' to pay even more cash.

I agree with the earlier comment that all this is simply a 'publicity stunt'.

If you spend say £2.5bn to buy £2.5bn of assets but get £3bn then you have a surplus value of £.5bn, shareholders might get it or customers might get it if there are no shareholders. Sure it's publicity but it's good for us and that is what counts

Is that cash though? If it's just a revaluation of e.g., loans on the balance sheet then where's the cash come from? What stops it from being revalued lower in the future if e.g., a recession hits? Why was Clydesdale/VM's valuation so much lower than NW's?

This is literally what they said was the reason, raise questions at the AGM or similar if you want answers to the more technical ones

Nationwide "gained" £2.3bn from the takeover - they paid £2.8bn, some would say overpaid based on a pre-bid valuation of £2bn, but the assets were valued at £5.1bn hence the £2.3bn gain - they forecast £1.5bn gain - so £800m knocking around "spare" which translated to ~£600m pay out for the £50 thank you

wmb194 · 1 April at 4:19PM

Nasqueron said:

wmb194 said:

Nasqueron said:

grumpy_codger said:

Nasqueron said:

epm-84 said:

grumpy_codger said:

epm-84 said:

I think in fairness to Nationwide - they have decided on a £50 member bonus. That's more than Coventry members are getting from the acquisition of Co-op Bank (unless they make some announcement soon).

How can a company make real money soon after acquisition of some other company? I think a short-term effect is quite opposite.

I'm not an expert on limited companies, but I think when they agree a merger it's not uncommon for there to be a shareholder pay out, even if the shareholders haven't reduced their shares. As building society members are like shareholders, should it be any different?

I suppose the strange thing is the fixed £50, regardless of the amount you have invested.

I posted about this before ither on this thread or another - they paid a fixed sum but got more than expected in value hence the surplus which they used as a payout

'Value' is too vague in this respect especially as as they aren't listed on the stock market. And after spending a lot of cash you hardly can use surplus 'value' to pay even more cash.

I agree with the earlier comment that all this is simply a 'publicity stunt'.

If you spend say £2.5bn to buy £2.5bn of assets but get £3bn then you have a surplus value of £.5bn, shareholders might get it or customers might get it if there are no shareholders. Sure it's publicity but it's good for us and that is what counts

Is that cash though? If it's just a revaluation of e.g., loans on the balance sheet then where's the cash come from? What stops it from being revalued lower in the future if e.g., a recession hits? Why was Clydesdale/VM's valuation so much lower than NW's?

This is literally what they said was the reason, raise questions at the AGM or similar if you want answers to the more technical ones

Nationwide "gained" £2.3bn from the takeover - they paid £2.8bn, some would say overpaid based on a pre-bid valuation of £2bn, but the assets were valued at £5.1bn hence the £2.3bn gain - they forecast £1.5bn gain - so £800m knocking around "spare" which translated to ~£600m pay out for the £50 thank you

Right, but it doesn't mean that £600m magically appears in a bank account... I don't believe a word of it, it's a marketing spend dressed up as brilliant dealmaking.

Nebulous2 · 1 April at 6:56PM

MACKEM99 said:

Perhaps its to do with their systems being down since Sunday (thats what I was told on the phone a few minutes ago) when I rang to complain about money I had transferred out well over 2 hours ago not appeared in receiving account yet. They cannot even log my complaint. Should I make a complaint about not being able to make a complaint?

If it was a faster payment, then you don't have any cause to make a complaint anyway. As I understand it, the timescales for a FP say that it will go through by close of business the following day.

Having said that, I'd find it very annoying as well. I do a money merry-go-round on the 1st of every month. If the money isn't there by the time I've closed one app and opened the next one I'm tapping my fingers in frustration......

Nasqueron · 2 April at 10:38AM

wmb194 said:

Nasqueron said:

wmb194 said:

Nasqueron said:

grumpy_codger said:

Nasqueron said:

epm-84 said:

grumpy_codger said:

epm-84 said:

I think in fairness to Nationwide - they have decided on a £50 member bonus. That's more than Coventry members are getting from the acquisition of Co-op Bank (unless they make some announcement soon).

How can a company make real money soon after acquisition of some other company? I think a short-term effect is quite opposite.

I'm not an expert on limited companies, but I think when they agree a merger it's not uncommon for there to be a shareholder pay out, even if the shareholders haven't reduced their shares. As building society members are like shareholders, should it be any different?

I suppose the strange thing is the fixed £50, regardless of the amount you have invested.

I posted about this before ither on this thread or another - they paid a fixed sum but got more than expected in value hence the surplus which they used as a payout

'Value' is too vague in this respect especially as as they aren't listed on the stock market. And after spending a lot of cash you hardly can use surplus 'value' to pay even more cash.

I agree with the earlier comment that all this is simply a 'publicity stunt'.

If you spend say £2.5bn to buy £2.5bn of assets but get £3bn then you have a surplus value of £.5bn, shareholders might get it or customers might get it if there are no shareholders. Sure it's publicity but it's good for us and that is what counts

Is that cash though? If it's just a revaluation of e.g., loans on the balance sheet then where's the cash come from? What stops it from being revalued lower in the future if e.g., a recession hits? Why was Clydesdale/VM's valuation so much lower than NW's?

This is literally what they said was the reason, raise questions at the AGM or similar if you want answers to the more technical ones

Nationwide "gained" £2.3bn from the takeover - they paid £2.8bn, some would say overpaid based on a pre-bid valuation of £2bn, but the assets were valued at £5.1bn hence the £2.3bn gain - they forecast £1.5bn gain - so £800m knocking around "spare" which translated to ~£600m pay out for the £50 thank you

Right, but it doesn't mean that £600m magically appears in a bank account... I don't believe a word of it, it's a marketing spend dressed up as brilliant dealmaking.

As is your right, I prefer to deal with facts rather than speculate about them making stuff up. Either way, we get £50 and the board are happy to sign it off, same with the loyalty payments