(Credit: George Iordanov-Nalbantov)

This substantial gain comes as Nationwide reveals its final set of results as a standalone brand.

The £2.8 billion purchase price, while representing a premium on Virgin Money’s share price, ultimately secured the bank’s assets at a significant discount. This has led to speculation that Virgin Money’s board, facing challenges such as stagnant growth and funding disadvantages, opted for a sale rather than pursuing potentially uncertain growth strategies under former CEO David Duffy.

Nationwide CEO Debbie Crosbie stated the gain was anticipated and allows for “significant headroom” to cover integration costs and enhance customer value. She hinted at potential benefits for account holders, including improved services and competitive interest rates.

The deal resulted in significant payouts for Virgin Money executives, including a £3.5 million windfall for Mr Duffy and a £724m gain for Sir Richard Branson, Virgin Money’s largest shareholder. The Virgin Money brand will disappear from UK high streets within six years as part of the agreement.

In September, Nationwide’s half-year results showed a 43% drop in pre-tax profits, attributed to falling interest rates and investment in customer benefits.